Emergency funds: count expenses, not just months

The explanation

This is budgeting arithmetic, not a universal allocation. Essential expenses of ₹20,000 per month over an illustrative three months total ₹60,000; at ₹30,000 per month, the same period totals ₹90,000. The appropriate period depends on responsibilities, income stability and personal circumstances.

Sources & further reading

• SEBI Investor management of income and expenses

Source review: 2 November 2026. Rules and product terms can change.