Emergency fund: A financial necessity, but how much should you save?
Kolkata: Emergency funds, as the name implies, is required when things go sour. Emergency funds are created for periods when regular income stops for some reason — usually job loss — and one has to ensure as smooth running of the family as possible. Insecurity is rising fast these days and competition in the marketplace is ensuring that people can lose their jobs at any time without any prior notice. The bottom line: one has to be prepared for any eventuality and, therefore, every one must strive to create an emergency fund soon after beginning one’s career.
The question is, what will be the size of the fund? The simple answer: there is no one size that fits all. The basic idea is to allow smooth running of the necessary expenditures of the family, obviously excluding discretionary items. The essentials usually consist of house rent, EMIs, education expenses of the kid, healthcare expenses, grocery and food items, fuel, electricity-telephone-internet bills etc. The........
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