How this is worked out
- Essential spending is what you must pay every month even in a crisis: housing, EMIs, groceries, bills, fees, premiums and money you send to family.
- Months to keep: 3 for a very secure job, 6 for a private-sector salary with two earners, 9 if you're the only earner, 12 if self-employed or on commission. Add 3 without health insurance, and 2 if three or more people depend on you.
- Where to keep it: one month in a savings account for instant access, the rest in a sweep-in FD or liquid fund that earns more and pays out within a working day.
Questions people ask
Should my emergency fund be invested in equity?
No. Emergencies often come with market falls, like job losses in a downturn. The point of this money is that it's there, in full, when you need it.
Can a credit card be my emergency fund?
Only for a few days. Card interest is 36–45% a year. Use the card if you must, then pay it off from the emergency fund.
Should I build this before investing?
Build at least 3 months first, then split new savings between the emergency fund and investments until it's complete.
Is a liquid fund safe?
Liquid funds hold very short-term government and top-rated debt, so they're low risk but not guaranteed like a bank deposit. Choose a large fund from a well-known house, or use a sweep-in FD.
Is my data saved anywhere?
No. Everything is worked out in your browser. Your numbers stay on your own device, and the page link holds them so you can share them.