How Much Emergency Fund Do You Need?
A common target is 3–6 months of essential monthly expenses in a liquid account (savings FD or liquid fund). If expenses are ₹50,000/month, aim for ₹1.5–3 lakh. Self-employed or single-income households often need the higher end — use the emergency fund calculator with your rent, EMIs, and food costs.
What counts as essential
Include rent, EMIs, groceries, utilities, insurance, and school fees. Exclude vacations and discretionary shopping from the monthly base.
Where to keep it
Split between instant-access savings and a short FD or liquid mutual fund. The goal is access within 1–2 days, not maximum returns.