How big should your emergency fund be?

An emergency fund is money kept aside for job loss, medical bills or urgent repairs. A common rule of thumb is three to six months of essential expenses; the right figure for you depends on how stable your income is.

Work it out from your own spending

Add up only the essentials: rent or EMI, groceries, utilities, insurance premiums, school fees and minimum debt payments. If that comes to ₹40,000 a month, three months is ₹1,20,000 and six months is ₹2,40,000.

Who should aim higher

Keep the money somewhere you can reach quickly, and top it up after you use it. The free emergency fund months calculator shows how many months your savings would cover.