A rainy-day fund will typically be INR 20,000 – INR 50,000 , while an emergency fund is more likely INR 1 lakh to 3 Lakh (6 month expenses) depends on your monthly expenses. Your rainy day fund will be in liquid format or separate account.
Why you save money for your rainy day and emergency time?
1. Lost Your Job:
It doesn’t matter how secure your job; anything is possible when it comes to your employment. It’s a good idea to have an amount of money saved to cover at least 3-6 months of bills and other expenses.
2. A Serious Health Condition:
It’s impossible to know when your health will take a downward turn, and that’s why it’s imperative that you start building your emergency fund as soon as possible.
3. An Expensive Home Repair Could Pop Up:
Who’s to say your computer or air conditioner won’t break down on a day. So always save some money in your rainy day fund.
4. Your Car small accident:
We don’t know when this happen i know you are good in driving but in road not everyone expert so be safe and prepare for it.
5. You Could Have to Unexpectedly Travel:
Unexpected travel won’t pay for itself if you find yourself needing to suddenly go out of town. Maybe it’s for a funeral or the birth. Sometimes these types of things can pop up.
How to save money for your rainy day and emergency time?
1. Start Freelancing:
Try to use your skillset and do part time freelancing work. Now a days lots of website where you can find freelance project regular basis.
2. Sell unused item:
Sell all unused items from your home, i know you have something which you never used last 6 month or 1 year. Sell it and save in your emergency fund.
3. Evaluate Your Budget:
Make your monthly budget and follow it. Decrease your weekend outing and increase your saving. Always try to eat at home.
4. Deals and offers:
Now a days internet is full of offers and deals, always find apps and web portal where they give us good offers for new user. We always save some amount in our grocery items.
5. Cut Extra Expenses:
Its not easy to increase income suddenly but cutting extra expenses is possible so first try to do this. Its my guarantee you can save INR 2,000 – INR 5,000 per month. We already try this and its helps us.
6. Tax Return Amount:
When your tax return amount ht in your bank account try to transfer in your emergency account.