emergencyfund

The emergency fund is the least exciting thing in personal finance. It is also the reason some people survive a crash and others do not.

Rules I follow:

Size: 6 months of expenses. If your income comes from trading, freelancing or content, make it 9 to 12.
Where: split between a savings account and a liquid fund or short FD. Instant access matters more than returns.
Not: crypto, stocks, gold, or anything that can drop 30% in a week.
When to use: job loss, medical, urgent family need. Not a dip, not an airdrop, not a "sure" trade.

When the emergency fund is full, you stop making fear based decisions in the market. You can hold through a red month because rent is not depending on it.

How many months of expenses do you have set aside today? Be honest, no judgement here.

#EmergencyFund #PersonalFinance #MoneyBasics