Everytime layoffs happens I immediately feel the importance of having emergency 🚨 fund, being in tech and in a private job anytime I can be unemployed. The only thing I can control is to buy some extra time for preparing for a new job and EF will give that. EF will give me the opportunity of 6 months of peaceful preparation to land a new job without telling my parents and avoiding unnecessary drama from relatives, I learned it hard way when my elder brother lost his job in UK market crash. My brother suffered for 4 months from unnecessary drama of cousins and relatives and my parents were so worried during that phase, so right now I have saved 6 months of emergency 🚨 funds. I am aiming to save 60 months of EF so that even if one day I feel I no longer want to continue working for few years and I can peacefully sit and build something without having fear of how to pay the bills. My definition of Emergency Fund is the bare minimum of money you need to survive which includes your rent, emi, subscriptions, rental bills, food, commute etc. Also when it comes to EF I put aside all my financial knowledge and simply keep my money in a saving account in SBI Bank, no FD, no RD, no MF, no Stocks hardcore cash for such situations, I apply all the financial knowledge to rest of my savings but not on Emergency funds.
Everytime layoffs happens I immediately feel the importance of having emergency 🚨 fund, being in tech and in a private job anytime I can be unemployed. The only thing I can control is to buy some extra time for preparing for a new job and EF will give that. EF will give me the opportunity of 6 months of peaceful preparation to land a new job without telling my parents and avoiding unnecessary drama from relatives, I learned it hard way when my elder brother lost his job in UK market crash. My brother suffered for 4 months from unnecessary drama of cousins and relatives and my parents were so worried during that phase, so right now I have saved 6 months of emergency 🚨 funds. I am aiming to save 60 months of EF so that even if one day I feel I no longer want to continue working for few years and I can peacefully sit and build something without having fear of how to pay the bills. My definition of Emergency Fund is the bare minimum of money you need to survive which includes your rent, emi, subscriptions, rental bills, food, commute etc. Also when it comes to EF I put aside all my financial knowledge and simply keep my money in a saving account in SBI Bank, no FD, no RD, no MF, no Stocks hardcore cash for such situations, I apply all the financial knowledge to rest of my savings but not on Emergency funds.
@RRK_coder Indeed. I aim for a 1 year EF. Currently at 7-8 months. But I'm keeping in FDs. They're pretty much breakable at anytime. 24x7.