Emergency fund of 3 years.
While 6 month of emergency fund should be the short term goal. By 40 we should go for 3 years of emergency fund. This is would be real financial freedom. Considering how job market is changing every 2 years because of macro economics of the world .
One interview, 1000+ job opportunities
Take a 10-min AI interview to qualify for numerous real jobs auto-matched to your profile 🔑
It is far easier to develop a new skill /side business than will keep the cash flow alive.
Emergency fund night cover the expenses, but the mental stress of everyday without a job will drive you crazy. How do I know this?. I have experienced it.
If you put for 3 years you are risking on potential investment opportunities... 3 years means 36 months if somebody has 2L of expenses in monthly basis you are potentially asking ti keep 72L which means additional 40-50L you are losing out on investment purpose.. if the EF is untouched for even 2 years chances of making profit from MF reduces by around 10-12L