How to calculate amount required for an emergency fund?
An emergency fund is a cash reserve solely for the purpose of dealing with unexpected financial situations, like car repairs, home repairs, job loss, etc. A basic guideline to calculate the amount required is to save enough to cover expenses for three, six or nine months. For example, a person with ₹10,000 monthly expenses should save ₹30,000, ₹60,000 or ₹90,000.