How to build an emergency fund

[manikwalia]

If you have tendency to spend that then build it is a FD that is not linked or in Liquid Mutual Funds, and don't put them in your assets sheet

 

[manikwalia]

I read thru hoping to get a proper response from someone on the 'how'... As im in the same boat. Not able to save since i dont have a proper strategy or plan on saving.

You should consult and advisor, if you think you earn enough but its habit due to which you cant save

 

[Thor04]

best way to store emergency fund is in fds and mutual funds... lets say u have an emergency fund of 5 lakhs lumpsum then put 2.5 lakhs in fds and 2.5 in liquid mutual funds...

 

[Pradumya]

I have been trying to build an emergency fund for a while, but every time I put money into it, I end up using it for non-emergency purposes or investing it. Every investment guru talks about the importance of having a 3 to 6-month emergency fund. How do you guys start building an emergency fund? What are the best strategies to build one?"

I can suggest you few steps
Open up a new bank account in any of the old school bank
Don't opt for debit card or netbanking either. Only get cheque book.
Register on a new UPI app which you never used like BHIM
Link that account on UPI app, it will ask to set pin, but don't set that pin.
you will have a UPI id linked to that bank account without UPI pin.
Remember that UPI id and uninstall the UPI app.


That's it. Just on your salary day transfer the funds to that UPI ID. You won't be able to withdraw by card or UPI.
In case of emergency, cheque withdrawal will be available.




Mark as solution if helpful.

 

[Dragon_slayer]

Difficult to answer without knowing how much you are making, and what are your expenses.

If someone is making 25-30K and living in big city then its not possible to maintain any fund. In this case your first priority should be getting a good health and term insurance.

 

[Batman]

Yeah OP might as well just do 100x shitcoin futures with all of his funds. It is a win-win situation as if he loses it all he won't have to worry about emergency fund as every day will be an emergency and if he becomes a millionaire he won't need to think about saving anymore.

Now that's a proper regarded post. Let's ask admin to dedicate a section for r/WallStreetBets discussions on this forum as well.

 

[wiseinvestor]

I am doing monthly FD of some amount to collect my Emergency Fund.

I am using Stable Money app for doing FDs. So everything online.

I think FDs are better for emergency fund than the liquid money. You can break FD when emergency arrives.