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Know how and when to use your emergency fund

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You cannot afford to stay long without an emergency found after using it. Replenish it as soon as possible Having an adequate emergency fund is one of the most important financial targets to achieve. Amid the widespread uncertainties brought about by the coronavirus pandemic, this fund is perhaps more relevant than ever. You should take steps to boost the size of your emergency fund if it's worthlesser than three months of our expenses. That being said, you also need to be cautious about situations where you right want to dig into your emergency fund. Here are a few scenarios: When your earnings have diminished If you lose your job or your business stops generating income, your emergency fund could be a source of sustenance for the short-term until your earnings are back on track. Depending upon the size of your fund, it could turn into an income replacement and help you avoid taking assistance from friends or family or even a loan and also keep you from liquidating your investment...
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What is more important in a financial plan: Insurance or investments?

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     Rishabh has just begun his career at a bank. He earns enough to take care of his household expenses. He also has a car, gifted to him by his parents on his graduation. Rishabh has surplus money in his bank account at the end of every month and wants to start investing. His idea is to accumulate a corpus that can be easily accessed if the need arises. He is considering starting an SIP in mutual fund. However, his parents want him to buy a life insurance policy. Has Rishabh given sufficient thought to all aspects of his financial situation before deciding on his investments plan?      Rishabh is doing a good thing by considering investments early in his career. However, it is important for him to first secure his income and savings against the emergencies that may derail his financial stability before he commits to an investment plan. There may be situations, such as a medical emergency or an accident, which require a large sum of money that he may not b...
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