HOW TO PROTECT YOURSELF FROM FINANCIAL CRUNCHES?

Disasters come in many forms but on personal level it hits very hard and is most unfortunate and frightening. It can be in form of unexpected financial crises, medical emergency and sudden loss of job etc. In this situation you will be stuck helpless and moneyless. To cope up with this problems and situation you will need an emergency fund, that’s exactly why you need to know the importance of Emergency Funds.

What is Emergency Funds?

Emergency funds are known as the backbone of strong personal backup financial planning. It saves our back in most difficult times of trouble. Emergency fund is the money kept aside for emergency situations and unfortunate events where these funds play a major role as the money invested in it can be accessed anytime you need.

The emergency can be anything to anyone ranging from minor to major loss with immediate need. So it should be part of every family’s financial planning which can protect them for life. Regular investment in emergency fund can even help by acting as a “support salary” by giving your mind peace from awful circumstances.

Things to considered before investing in Emergency Funds:

Planning:

The best part of emergency funds is its liquidity and safety. The top choice for investing in such situation is Liquid Funds and short term Funds.

You can start investing now by help of  which provides you the option of “My Pursue” where you can save and store your money for emergency funds.

The investor can convert the investment into cash anytime according to their requirement. Emergency funds come with no lock in period where as other investment schemes such as PPF, ELSS, NPS etc comes with a lock in period along with high risk which can’t be redeemed during emergencies.

Amount:

Figuring out the amount how much can one save each month so that the emergency fund covers atleast 3 months of your expenses as it is good starting point. According to experts moving on from 3 months to 8 months of your expense would be perfect as it would be fully stocked emergency fund.

But it doesn’t stop here as every time person’s salary and lifestyle changes, their allotments in emergency funds should change and improve accordingly.

This is how it would save you from emergencies and trouble times and moreover you will not have to stress overnight.

You can use GIIS Financial tools or Our Android App  for Investment, tracking and Asset allocation planning. 

*Mutual Fund Investments are subject to market risk, read all scheme related documents carefully.

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