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Emergency Fund : Stepping Stone of Financial Planning
One of the 1st things u s'd consider b4 u invest is ask below questions to urself -
1. What would I do if I lost my current source of income?
2. How would I survive for the first six to 12 months of unemployment ?
One of the 1st things u s'd consider b4 u invest is ask below questions to urself -
1. What would I do if I lost my current source of income?
2. How would I survive for the first six to 12 months of unemployment ?
You start an investment be it SIP or FD for a purpose of wealth creation and when any kind of emergency takes place, you redeem the amount or break the FD to suffice the requirement of emergency.
While doing so, the compounding effect does not take place.
It is always
While doing so, the compounding effect does not take place.
It is always
recommended to have an emergency corpus of around 6-9 months of entire salary.
Yes, entire salary because your recurring FD’s, Insurance premium, SIP’s are part of your salary
You will find people recommending an emergency corpus of 6 to 9 months of expenses which is wrong
Yes, entire salary because your recurring FD’s, Insurance premium, SIP’s are part of your salary
You will find people recommending an emergency corpus of 6 to 9 months of expenses which is wrong
because if you don’t factor your investments and when emergency occurs you will have to stop your investment be it SIP or FD. So my question to you is, why did you started your investment?
You started investment with a goal in mind and when emergency happens you are bound to
You started investment with a goal in mind and when emergency happens you are bound to
redeem those investment, dissolving the purpose of investment i.e your goal.
Also, It depends from a person to person and industry to industry
For example: A salaried individual with a 15 years’ experience should have an emergency corpus of 18-24 months coz there r less jobs
Also, It depends from a person to person and industry to industry
For example: A salaried individual with a 15 years’ experience should have an emergency corpus of 18-24 months coz there r less jobs
available for a individual with 15 yrs of experience where as an individual with 5 yrs experience, many jobs are available. It also depends on Industry to Industry
For example: If an individual is working in an airlines industry a corpus of around 18-24 months is recommended
For example: If an individual is working in an airlines industry a corpus of around 18-24 months is recommended
because there are few airlines in India and there is no guarantee that you may get a job as early as possible. Rewind yourself back and check what happened with Kingfisher Airlines employees and latest is Jetairways.
If you currently have a FD or Debt Mutual fund that can be
If you currently have a FD or Debt Mutual fund that can be
mapped towards emergency corpus make sure you only touch that money when it is required.
By creating an emergency corpus, you will be able to continue your wealth creation journey without any hiccups. #personalfinance #financialplanning
By creating an emergency corpus, you will be able to continue your wealth creation journey without any hiccups. #personalfinance #financialplanning
