Emergency Fund
Hi everyone, recently I was watching Anshumanfinanace video on YouTube and there is this question where he asks everyone about their Emergency Fund considering you are living in India. How much amount do you think one should keep as an Emergency Fund?
Atleast 5-10 taking into account medical emergencies
Somebody doesn't have health insurance
Why wife was denied mediclaim by Niva Bhupa as she had 101 fever and not 102 minimum unofficial requirement policy by the company. She was hospitalised and responded to only steroids in 2022 june. Had a 15lacs floater policy for myself and my wife. Escalated to IRDA also but didnt get any revert or solution. So, yes. Med emergy fund is do required so that if ur insurance ducks u up, u are not left for begging
Is emergency fund okay to be in FD
Tiered FDs are ok but a headache to manage for marginal gain. So preferably not.
If your emergency fund is 12L and your estimated monthly outflow is 2L, how will you structure your FD?
6 x 2L? With what tenure? 1 x 12L is a no-go because you'll need to liquidate at first pass.
The easier and elegant way is to hold them in a Liquid Fund or a Sweep account. Fractional withdrawals without penalties.
I have multiple FDs of 1 -2 year maturity, not tiered though. Sweep account give lesser interest though
6 months of your total expenses, include all the liabilities as well (current component of those).
Idea is to consider stress case scenario where the situation is you need to support everything that is going on in your life for 6-9 months (financially)
Start small. I’d say it should be atleast three months of your Paycheck. Invest the rest.
