Maybe Non-Withdraw-able FD’s. So that it stays locked for a certain period of time and also generates interest.
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How to build an emergency fund
- Thread starter SMS91
- Start date
What if his emergency fund is equivalent to our net worths!
He would be depositing gold coins in that gullak to save space🤣
But the most important thing is to learn to not spend. For any purchase over 10k inr whenever you feel the urge to buy it, instead write it down in your notes app and come back to it and write down whenever you feel the urge to buy it again. If you keep on having these urges for the next three months then maybe you can buy it. But most probably you will have changed your mind if it was a Want.
Why not create an RD for the amount you want. By creating a term deposit you'll have a habit of saving every month. Also if you break it prior to maturity there'll be a penalty. This will hopefully inhibit you from breaking it. Also put the money in rd as soon as you get your salary and don't wait for end of the month.
People here are worried about IT notice, he will be worried for cbi 😂
Like my wife do ? She click "add to cart" whenever she feels the urge to do shopping. But never do checkout. 😜
SMS91
TF Buzz
Thank you all for your suggestions. The main problem I face is that I have a monthly income of 45k, but with some small investments and daily expenses, I have a pretty small amount left to put into an emergency fund each month. If I need to buy something online, I take money out of the emergency fund because I don't want to take money from my investments. do you guys think I should stop my monthly investments (which are not a big amount, maximum 10k) and build an emergency fund equivalent to 3 months of income? It would take about a year to make this emergency fund. Do you guys think stopping investments for a year is a better idea?
The problem is this, not emergency fund.
Insurance & emergency fund is just a formality not a dependence.
First of all open a savings account in a little bit far from your home , but trusted bank like SBI, hdfc or icici don't take cheque book, atm . Don't install mobile banking.
2nd make an RD of one year , an amount suitable for you. That make the transaction in the next day you get your salary.
After one year make and FD with it.
I know far branch or not installing app will not save your money. You have to adjust your expenses after the remaining money. If you don't have that much in this month. Then you probably should wait for the next month to buy that longings. But don't dare to touch that amount. You will be in a good condition in 3 year. With three ladderd auto-renewal FDs
2nd make an RD of one year , an amount suitable for you. That make the transaction in the next day you get your salary.
After one year make and FD with it.
I know far branch or not installing app will not save your money. You have to adjust your expenses after the remaining money. If you don't have that much in this month. Then you probably should wait for the next month to buy that longings. But don't dare to touch that amount. You will be in a good condition in 3 year. With three ladderd auto-renewal FDs
Acha listen
If you have some supportive hands to help you financially during an emergency for 4-5 months then you can build your emergency corpus slowly. Better invest in financial instruments that give better returns as per your risk appetite.
If not, then let me know the definition of your emergency fund.
vine
TF Legend
When you receive salary, follow these steps in sequence:
First ,keep money aside to fulfill needs, rent, groceries, daily expenses, etc. Keep it in cash or SB account.
Then, keep money aside to create an emergency fund. Use SB account or RD.
Then keep money aside to pay for term insurance, health insurance, house/bike/car insurances.
Then put money in investments.
I personally used a mutual fund liquid fund to build my emergency fund years ago and I have not touched it since though that it could have been since I was naturally wired more towards saving and investing than spending. The hardest part about personal finance is behavioral, and it seems like that is where your issue lies. No amount of advice, planning or strategy will help if you don't have the discipline to stick to it.
I am not sure how much your expenses are from this post but here's what I think
- Figure out a way to increase your monthly income. Saving and investing become easier if you can increase your income while keeping your expenses in check
- Focus on building your emergency fund for a few months, stopping investments temporarily if necessary. Once the fund is in place then you can go back to investing normally.
- Don't impulse shop - if you decide you want something, wait a few days and see if that desire is still there
- Plan your larger spends before hand as goals: If you want an item that costs say 20k, try and see if you can set aside 5k each month for a few months towards it. This way not only do you not need to break any of your existing investments, but the item you buy will also feel more meaningful and rewarding because you saved towards it.
doraemon
TF Legend
Okay so I will give my suggestion,
If u want to save a bit and u are not comfortable with stock/mf ,etc
Better stick with banks products
Like rd,fd
Or if u can ,then open an account in post office and open rd ,ppf,nsc,kvp etc as per time frame u need
That way u will ensure a continuous investment without any backlog
And usually post office (talking about gali gali Wale post office and not head post office) are garib
One has to tell postmaster in advance in case we want to withdraw more than one lakh so that they can arrange funds next day
My investment strategy
Ppf 1.5lac every April
Nsc of 50k every alternate month
Kvp of 1lac every quarter
And 6 Rd of 5k every month for 5 years
And some fds
See all of them have diffrent timeframe so u can choose a product accordingly
Don't fall for crypto/usdt/mf/stock wagarh things if u are not aware
And stick with guaranteed products...
If u have any queries or comments I am listening
If u want to save a bit and u are not comfortable with stock/mf ,etc
Better stick with banks products
Like rd,fd
Or if u can ,then open an account in post office and open rd ,ppf,nsc,kvp etc as per time frame u need
That way u will ensure a continuous investment without any backlog
And usually post office (talking about gali gali Wale post office and not head post office) are garib
One has to tell postmaster in advance in case we want to withdraw more than one lakh so that they can arrange funds next day
My investment strategy
Ppf 1.5lac every April
Nsc of 50k every alternate month
Kvp of 1lac every quarter
And 6 Rd of 5k every month for 5 years
And some fds
See all of them have diffrent timeframe so u can choose a product accordingly
Don't fall for crypto/usdt/mf/stock wagarh things if u are not aware
And stick with guaranteed products...
If u have any queries or comments I am listening
open a psu bank account.. dont activate any online banking or upi or DC.. Further the branch the better 🙂
Move 10% of salary to PSU on salary day toan RD in the PSU.
Will be. painful may sound unreasonable but may work for u
SMS91
TF Buzz
I also thought about the same thing and opened an India Post Payments Bank account a year ago, but activated UPI, and started buying products online. Now, after considering your opinions, I am thinking about opening an RD offline from SBI so I can't easily cancel it through the app. Besides the SBI and India Post Payments Bank accounts, I have HDFC and ICICI accounts, (which I opened for pre-approved credit cards). I have a PPF account where I invest 3k monthly, save 3k monthly for LIC (paying 9k every three months), and invest 3k in a mutual fund SIP.
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