Emergency fund
Savings kept aside for a job loss or a big unexpected bill: usually 3 to 6 months of essential spending.
Keep it somewhere safe and quick to reach: a savings account, a sweep-in or short FD, or a liquid fund. Not in shares, which might be down just when you need the money.
Size it on essentials (rent or EMIs, groceries, bills, insurance, school fees), and more if your income is irregular or others depend on it.
Example
Essentials of ₹45,000 a month and a steady salary: about ₹1.35 lakh to ₹2.7 lakh.
Emergency Fund Calculator
How many months of essential spending to keep aside, and how long it takes to build it.
Related terms
Rules as of tax year 2026-27. Written by the Welthr team; last reviewed on . Not financial advice.