Tool 04 · Safety

Emergency Fund Sizer

This is step zero. An emergency fund isn't an investment — it's the insurance that protects your investments from being sold at the worst possible moment because the car broke down.

Your situation
Rent/EMI, food, utilities, insurance premiums, school fees — not restaurants and shopping.
6 for stable salaried jobs; 9–12 for freelancers, single-income homes, or volatile industries.
Your target fund
Gap remaining
Fully funded in
Progress
Saved (0%)

Where to keep it

Liquid, boring, untouched
Structure

Split it in two tiers

Tier 1 (1 month): savings account — instantly available at 2 a.m. Tier 2 (the rest): a sweep-in FD or a liquid mutual fund, earning 6–7% and redeemable in a day.

Not equity

Never in the market, never in crypto

Emergencies cluster with market crashes — layoffs happen in downturns, exactly when equity is down 30%. An emergency fund in stocks is a fund that shrinks precisely when you need it.

Discipline

Define "emergency" in advance

Job loss, medical event, urgent home/vehicle repair — yes. Sale on flights, new phone, "great dip to buy" — no. A separate account (not your salary account) keeps it out of temptation's reach.

After it's full

Then — and only then — invest aggressively

Once the fund is full, redirect the same monthly amount straight into your SIPs. You've already proven you can save it; now let it compound. Refill the fund first any time you draw it down.

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