Build a 6-Month Emergency Fund

Beginner10 min4 steps

A practical 4-step workflow to calculate how much you need, where to park it, and automate your savings with SIP.

1

Calculate your monthly expenses

List all fixed and variable monthly expenses using the Budget Planner to arrive at a realistic monthly burn rate.

2

Set your target corpus

Multiply your monthly expense by 6 (or 12 if self-employed). This is your emergency fund target.

3

Choose the right instrument

Emergency funds should be in liquid mutual funds, high-yield savings accounts, or short-term FDs — not equity.

4

Automate monthly contributions with SIP

Set up a monthly SIP into a liquid fund until you reach the target. Use the SIP calculator to find the right amount.

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