What is an emergency fund?

There are some such in life when we do not have money, at that time we spread our hands in front of neighbors, relatives, friends, but they say that nothing works in times of trouble. But today we are going to give you such information through which you can save your life from the lack of money and you can use the saved money in times of trouble.

What is an emergency fund?
What is an emergency fund?

The topic we are going to talk about today is what is an emergency fund?

Therefore, after completing the article from beginning to end, only then you will be able to get a brief information about what is an emergency fund.

What is an emergency fund?

Emergency fund is what you keep in time of trouble, you can keep it in a bank account or any other medium.

To understand emergency fund, you have to understand three examples well, after that you will understand what is emergency fund, although I have taken three examples as a precaution, there are many examples in which emergency fund is used. Let’s see three examples:

(1) Suppose you work in a company, suddenly due to some reason you had to leave that company, you sat unemployed. The present time is such a time that there is no limit on the expenses in the day, because there is an era of inflation.

Meanwhile, your most used money is your emergency fund which helps you in times of trouble.

(2) God forbid anyone should get sick, but at present, human beings are definitely troubled due to some disease. Meanwhile, in future if you get any disease of any kind, then you put all your money in that disease and sit down.

But if you have an emergency fund with you, then you will be able to get your treatment done well and will also be able to save your money.

(3) Man’s desires are never going to end, meanwhile, in family matters, we may have to buy something but we do not have money. In the meantime, now that we have an emergency fund, then we can easily buy the item of our choice and also avoid the burden of interest of others.

Although there can be many examples of this in daily life, but through two-three examples, we have explained what is an emergency fund.

In any difficult time, lack of money can shatter a person. In times of trouble, even your own work is not done, meanwhile if you have your own saved money, then you can spend the money you want on yourself without any pressure.

Where to save money for emergency fund?

Emergency fund means to use your money at the time of need. Therefore, keep your money in such a place where you can immediately withdraw it in the time of trouble, if the money which is not useful in the time of trouble is of any use later.

Below we are telling you some good options by which you can save the form of emergency fund in a good way, you can use them immediately when needed:

1:- As far as possible, you should save 10% of your earnings for the emergency fund, you can also keep this money by withdrawing it separately with you. You should keep the emergency fund in the form of money in a piggy bank or any such material during the month, which you can withdraw them only at the time of need.

2:- Another way is that you keep your savings money in your savings account, you can withdraw those people from your bank in case of trouble.

3:- The third way is that you can keep your money in a liquid mutual fund because liquid mutual fund provides you a very good facility, you can withdraw the money you have deposited at the time of need. . There are many experts who give the same opinion that you should put some part of your emergency fund balance in liquid mutual funds only.

4:- You should store some such thing for your future and keep it with you, why you can get money by selling it if needed, these things can be of many types, which can be gold, car etc.

Because this item is such that we can sell it at the time of our need and get money from them as an emergency fund.

Talking about emergency fund money, you must have at least 5-6 months of your earnings saved. At present, many schemes are being run in government and private banks for shaving your money, in which you can deposit your money and collect a good emergency fund from there.

If you are thinking of using emergency fund after a long time, then you can also invest your money in LIC etc. You can get very good returns from it in the coming time.


See friends, happiness and sadness go on in the life of a human being, sometimes there are good times and sometimes bad times, so you have to be ready for your bad times.

You should start collecting emergency funds from now on in view of the lack of money in your coming time, this is your only benefit, neither you will be buried under the interest of someone else’s rupee nor you will be under any other’s pressure. I will stay. I hope you guys have understood well the information given by me


When should the emergency fund money be used?

The question of many people is that when to use the money of their emergency fund, then the simple answer is that you do not have to use the money of the emergency fund for small tasks, you have to use it very much when you need it. For example, suppose you have become unemployed, or you have got any kind of disease or any other kind of major disease then, or you have to travel somewhere outside at that time also you Emergency fund can be used.

How much money can I keep in an emergency fund?

Ans] Often a question of people is asked a lot that how much money we can keep in an emergency fund, for this I would like to tell you that there is no limit, it all depends on your earning, some people Even up to 10 lakhs are saved in the form of emergency fund.

If we talk about a middle class husband, then he should have at least 12 to 6 months amount in the form of emergency fund, every person has to save at least 10% of his earning.

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