Emergency fund plays an important role in financial planning , but the major question comes how do we keep it. Probable solutions maybe
1. Cash at home.
2. Cash in Bank
3. Keep in Liquid funds
4. Invest in Debt funds.
5. Combination of all of it.
Also how much do we need to keep as emergency, now the answer could be 3-6 months of salary or is it the gross expenses per month ?
Guys what is your take on it. Please educate me.
Regards,
Avinash