Securing Hannav Ledger...
Securing Hannav Ledger...
Glossary
Emergency fund is readily accessible savings set aside to cover unexpected expenses such as job loss, medical bills, or urgent repairs.
Emergency fund is money kept safe for surprises — so you never sell long-term investments or take expensive loans in a crisis.
Held in liquid funds, sweep FDs, or high-yield savings separate from growth portfolio. Size typically 3–6 months essential expenses; freelancers may need 9–12 months. Replenish after any drawdown.
Monthly expenses ₹40,000 → target emergency fund ₹1.2–2.4 lakh in liquid fund. Job loss in month 3 covered without redeeming ₹5 lakh equity SIP portfolio.
Liquid mutual funds, sweep-in FDs, or dedicated savings accounts with instant access. Avoid equity or lock-in products.
Yes. Cover essential EMIs, rent, groceries, insurance, and school fees for the target month buffer.
Credit is expensive backup, not replacement. Emergency fund prevents high-interest debt during income disruption.