I understand that keeping Emergency Fund is very Important. I would like to know that if how should one keep or am i keeping the right amount as emergency fund?


#1

At a certain age, once you start thinking about an emergency fund you start getting all sorts of questions in your mind.

One important thing that I would like to understand is what is a right amount to be set aside for an emergency fund and how should the amount be parked?


#2

First Understanding Emergency fund is important. Once you have understood the concept of an emergency fund you can decide on your own the amount you would require to keep the sum aside.

An emergency fund is a stash of money set aside to cover the financial surprises life throws your way. These unexpected events can be stressful and costly. Here are some of the top emergencies people face: Job loss. Medical or dental emergency.

If all your insurance is in place and if you are adequately insured then your emergency fund could range between 6months on a lower side and higher side should be around 24months.

Also, you can take the assistance of the below-mentioned calculators to give you a rough idea.

http://www.moneycontrol.com/personal-finance/tools/emergency-fund-calculator.html

https://www.moneyunder30.com/emergency-fund-calculator