Lesson 3 of 10 · 3 min
The emergency fund
A cash cushion before you invest
An emergency fund is money you keep aside for a sudden need, before you invest anything. A job gap, a medical bill, a phone that dies at the worst time.
The rupee example. Aim for 3 to 6 months of your basic expenses, kept somewhere safe and easy to reach, like a separate savings account. If you spend about ₹20,000 a month, that is ₹60,000 to ₹1,20,000 set aside and left alone.
Build this first. It stops a small surprise from turning into a loan you did not want, and it lets you invest the rest with a calm head, because you are not one bad week away from trouble.
This is general education, not financial advice.