Thread by @myfinology

We thought this was a peculiar case of one client, until we did our research on millions of inputs .. & the result just blew our minds! 🤯

72% Indians don't have adequate emergency fund⚠️

This is a 🧵 on even more shocking facts (1/11) 👇

#personalfinance #FinancialFreedom

https://twitter.com/myfinology/status/1472854039012339714

Are you just as shocked as we are? 🤔

Find out more such facts in the full report for FREE - bit.ly/IndiaMoneyHabi…

Well, absence of an #emergency fund could actually mess up ur entire #personalfinance ! Understand the reasons in this thread..

(2/11) #FinancialFreedom

A job loss or an unforeseen medical expense can backfire if u don’t hv readily available funds. That's where ur emergency fund comes in rescue!

It includes a highly liquid investment to meet any emergency & reduce ur dependence on loans.

But then, how much? 🤔

(3/11)

Generally, one should prepare to set aside funds to cover at least 3 to 6 months of expenses.

But the ideal size can differ depending on the person’s financial obligation & income stability.

Then, how much emergency fund is adequate for ME, you ask? 🧐

(4/11)

To know if your emergency fund is adequate, visit Recipe.finology.in, go to Dashboard. Open 'Prosperity Ingredients' & use the ‘Emergency Fund’ calculator.

Enter a few details⤵️

(5/11)

For instance:
My monthly income is Rs. 40,000
The amount of money i have parked in savings Account + FD = Rs. 10,000
My source of income is somewhat stable

Then, click on ‘Find Problem’ button.

(6/11)

You can see how much should be your adequate emergency fund and how short you are from that amount.

Based on the above example, the results come out as follows⏬

Besides, just below the result, you can view sources where you should create an emergency fund.

(7/11)

Wonder how you can arrive at that adequate emergency fund level? We’ve got that covered too.

You can use this tool⤵️

(8/11)

What if I have excess money? Am I losing something? 🤔

For instance -

(9/11)

Definitely, you're losing on a lot!

Purpose of emergency fund is to provide liquidity in any unforeseen event. But if u hv excess money in ur bank account, it may yield negative real returns over d long run. In short, u r practically losing ur money!

So, what to do?🤔

(10/11)

Park this extra money that you've saved in inflation-beating instruments like shares & MFs.

We've simplified the process for you by picking solid stocks & mutual funds in the 'Recommendations' section in the Dashboard of Recipe.finology.in

Access them now! 😍

(11/11)