When Life Hits Hard, Prepare
Life has a funny way of throwing curveballs when you least expect them. Your laptop crashes before a deadline. You fall sick and need unpaid leave. Your bike breaks down, or worse, you lose your job. These moments aren’t pleasant to think about, but they’re real, and they can happen to anyone.
That’s why an emergency fund is your financial superhero. It’s money kept aside only for life’s surprises. Not for vacations, shopping, or that new phone you’ve been eyeing. It’s your safety net when you have no choice but to spend on the unexpected.
So, how do we build one?:
- Calculate your monthly expenses: Add up everything – rent, food, transport, bills, subscriptions, groceries, even that daily chai. Don’t forget the less obvious stuff like medicines, haircuts, or money you send home. Be honest, because your emergency fund depends on it.
- Multiply by six: That’s your emergency fund target. If you spend Rs. 25,000 a month, you need about Rs. 1.5 lakh. It sounds big, and it is, but six months of expenses gives you breathing space to recover from a job loss or medical crisis without panic.
- Start small, but start: Even Rs. 5,000 set aside is better than nothing. Automate a small transfer from your salary each month and treat it like a must-pay bill. Slowly but surely, you’ll build a safety net you can count on.
- Keep it separate and accessible : Open a dedicated savings account just for emergencies. Don’t mix it with your regular spending account, and avoid locking it into stocks or FDs that charge penalties or take time to withdraw. In a crisis, you need instant access without extra costs or delays.
Why it matters?
An emergency fund may not feel exciting, but it gives you something far more valuable: peace, freedom, and the strength to handle life’s tough surprises. Now, imagine how different you’d feel a year from now with even a small safety net behind you? That’s why communities like Moneybar exists, to remind you that you don’t have to do this alone. And for those truly ready to share your journey and stories, let’s talk on the other side, at Moneybar
Emergency funds won’t make you rich overnight, but it will protect you from being wiped out overnight
Paweii Kayina
Founder & CEO, Moneybar