Your emergency fund

An emergency fund is money set aside only for surprises: a medical bill, a job loss, a broken laptop.

How much?

Aim for 3 to 6 months of essential expenses. Students can start with a smaller target like ₹5,000–₹10,000.

Where to keep it

It must be safe and easy to access: a savings account, a sweep-in FD, or a liquid fund. Not in stocks, which might be down exactly when you need the money.

Why it comes first

Without it, any surprise forces you to borrow (often on a credit card at 36%+ a year) or sell investments at a bad time.

Build it step by step

Start with one month of expenses, then grow it. Refill it after you use it.