An emergency fund is your financial umbrella. It keeps you afloat during sudden medical situations, car breakdowns, or unexpected job transitions. Here is how to build your emergency safety net step-by-step.

Step 1: Calculate Your Monthly Bare-Minimum Survival Cost

List only mandatory expenses: rent, food, utilities, loan EMIs, and basic insurance. Ignore subscriptions, clothing, dining out, and travel. Multiply this survival cost by 6. This is your Emergency Fund target.

Step 2: Choose the Right Storage Place

Your safety net must be highly liquid and safe. Keep 50% in a separate savings account with sweep-in FD facilities, and the remaining 50% in a liquid mutual fund or standard short-term fixed deposit.

Step 3: Save Systematically

Allocate a fixed amount every month specifically for this fund. Do not touch this balance unless a true emergency occurs. Having a clear ledger in DailyBachat keeps this reserve isolated from daily spending money.

Savings