What is Emergency Fund? — Meaning, Definition & Example
Definition
An emergency fund is a cash reserve set aside to cover unexpected expenses like medical emergencies, job loss, or major repairs. Financial advisors recommend keeping 3-6 months of monthly expenses in a liquid, easily accessible form — savings account, liquid mutual fund, or sweep FD.
If your monthly expenses are ₹50,000, your emergency fund should be ₹1.5-3 lakh, kept in a high-interest savings account (6-7%) or liquid fund.
🇮🇳 Emergency Fund in Hindi / हिंदी में
इमरजेंसी फंड — इमरजेंसी फंड अप्रत्याशित खर्चों जैसे चिकित्सा आपातकाल, नौकरी खोना या बड़ी मरम्मत के लिए अलग रखा गया नकद रिजर्व है। 3-6 महीने का खर्च रखने की सलाह दी जाती है।
Emergency Fund (Hinglish) — Emergency fund wo cash reserve hai jo unexpected expenses ke liye rakha jaata hai — medical emergency, job loss, major repairs. 3-6 months ke expenses ka amount savings account ya liquid fund mein rakho.