Savings and Budgeting
Are you saving enough for the rainy days? Understanding the emergency fund & why it matters.
by Khatapana
Nov 22, 2022 - 1 min read
![Are you saving enough for the rainy days? Understanding the emergency fund & why it matters.](https://khatapana.s3.ap-south-1.amazonaws.com/media/1_S6r0mdD.png)
Life is full of surprises and uncertainty.
Just like the weather!
You have sunny days and rainy days.
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What if?
All of a sudden you lose your job. Or someone from your family gets sick.
Or another pandemic just like the Covid strikes again?
Who knows? Right!
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“By failing to plan, you are preparing to fail”.
So do you have a plan for such unexpected events?
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Save for the rainy days!
Rainy days= hard times or times of misfortune
And an emergency fund may be your savior in such rainy days!
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What exactly is an emergency fund?
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Emergency fund is your plan or the umbrella for your rainy days.
From your income, you may set aside a certain amount and build your emergency fund. It may be kept in a bank account or with yourself but you save a certain amount of money for your hard times.
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How much should I keep in the emergency fund?
Well, it depends!
But it should be enough to cover at least 3 to 6 months of your regular household expenses.
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Want to know more on how to create an emergency fund?
Comment below and we will prepare a step by step guide to help you.
The first step is knowing your monthly spendings! If you haven’t started tracking your money, sign up for Khatapana.