2020 started on an ordinary note. No one, absolutely no one had imagined in his or her wildest dreams, corona would start to also mean a virus and not just beer. Normal would have a new definition, and our entire life ecosystem will see a change, the kinds, we have never experienced before. Emergencies are quite unpredictable. They can lead to minor alterations or a major crisis-induced change. How do you ensure a financially worry-free life in times of such crisis?

If you planned and saved for an emergency fund, you did manage to survive this pandemic with less worry. If this crisis has given you a wake up call – to maintain an emergency fund, here is how you should go about it.

What is an emergency fund?
We have all grown up to idolize superman, batman, and wonder woman as saviors in times of trouble. An emergency fund is your financial go-to corpus sans the eccentric and glamorous dress up of superheroes. It will save you from accumulating debt, requesting help from family and friends or a bank loan. With an emergency fund in place, you become a financial superhero for you and your family. 

Your emergency fund is the accrual of your income of a minimum of 3 months to an advisable 6 months. The fund should be accessible anytime – you are faced with an emergency without having to pay exuberant withdrawal fees or penalty. The highlight of this fund is that; you only withdraw it when you are in dire need and the funds have high liquidity for instant combat. 

How to build an emergency fund?
Before you step out and rush to build an emergency fund, remember it is a slow and steady process. It takes millions of water droplets to fill a bucket. You must approach this activity with the right knowledge and direction to avoid the frustration of unwanted pathways. Do consult your financial planner to see which investing methods work best for you. This will save you time, effort and accelerate your road to building an emergency fund, the right way. While you are at it, the following tips should help you get a head start and create a fund you can rely on. 

How much do you need to save?
Understand your finances and start with defining the goal. Whether you hold an uncertain income or high net income – your contingency fund needs to cover all predictable and unpredictable expenses for at least a quarter to semi-annual expenses. Calculate and target the savings accordingly.

Where do you need to save?
Trust a coach to know your unmatched strengths, fillable weaknesses, life-changing opportunities and must-watch threats you need to overcome to excel in your sport. Similarly reach out to a financial planner to map which financial instrument – fixed deposit; liquidity-promising mutual funds, stock and what investing approach and timeline is the perfect match for you.

You must save at regular intervals. Save in good days to see rainbows and certainly save in dark times to see the stars. It is equally important that as you progress in life, you grow your emergency fund as you grow. This will ensure you are protected in emergency to meet all your liabilities, wants and needs.


Emergency is gender neutral.
Inclusivity is not an exception anymore. As the rule that men need to provide is bending, it is important that women step up and take control of their finances. This is true for an emergency fund as well. It does not matter whether you are a housewife or a girl boss of a multi-national conglomerate. Emergencies are gender neutral and you should be as well.


Whether you are a creative professional growing strength by strength in the gig economy, a start-up or a millionaire. Everyone has to overcome an emergency at some point in life. Your life plans and financial plan is soul less, if you have not accounted an emergency fund. Want help to manage your contingencies fund? Need to initiate an emergency fund? Consult a financial planner today.