7 Tips For Building An Emergency Fund

Anupama Jha
May 05, 2024

Set Realistic Goal

Decide how much you want to save. A common recommendation is to have 3 to 6 months' worth of living expenses in your emergency fund.

Start Small and Stay Consistent

Begin by setting aside a small amount regularly, even if it's just a few rupees a week.

Automate Your Savings

Set up automatic transfers from your checking account to your emergency fund.

Cut Unnecessary Expenses

Review your monthly expenses and identify areas where you can cut costs.

Find Additional Income Sources

Consider side gigs or freelance work to earn extra income. Dedicate this additional money to your emergency fund to reach your goal faster.

Keep It Separate

Open a dedicated savings account for your emergency fund.

Avoid Using It for Non-Emergencies

Avoid tapping into your emergency fund for everyday expenses or unnecessary purchases.

VIEW ALL

Read Next Story