4 financial resilience habits to build a 6-month emergency fund

Udisha

Calculate your monthly expenditure

Make a calculation of the amount of money you need for monthly essentials like rent and groceries and multiply this amount by six. This is the amount you want to save. Once you have a target, you will automatically prioritise important expenditure to save for the emergency fund.

Automate monthly savings

Make savings mandatory instead of waiting till the end of the month to save the money you are left with. Set up SIPs so that a fixed amount of money is automatically deducted every month.

Redirect financial windfalls

If you receive extra money in the form of bonuses, gifts or refunds, don't spend it, save it. This will help you save up for the 6-month emergency fund faster.

Set strict withdrawal rules

Do not give in to impulses, define what counts as emergency. This will help you save your emergency fund for actual crises instead of manageable financially strenuous situations.

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