POSTED BY April 11, 2013 1:52 pm COMMENTS (15)ON
As discussed in various questions here, I am on my to create an Emergency fund to take care of any unforseen emergency (specially he job loss).
My wife and self, both are working and net take home a salary of 1.75L per month. We have recently booked a flat and have utilised all our savings to pay our part. Presently we are paying only the pre-EMI of loan and shal take about 18 more month for full EMI to come into force.
I wish to create an emergency corpus of 6 lakh within next 18 months so as to take care of 6-7 months of emegency period, if need be. Total outgo as of now is about Rs.1.2 Lakh per month which includes house rent, household expenes, pre-EMI, payments towards investment such as insurance premium and 2 SIPs (just started for Rs.5000 a month in 2 MFs).
Assuming, I create the desired emergency fund in 12-18 months, than what do I do with this amount? Should I keep it in Savings a/c or do an FD or park in a debt fund or is there any other option to keep it safe, earning small interest and also be able to take out in case of sudden emergency?
Request your suggesstions.
Just to add, I have already taken care of life insurance via term plan for self and wife, family floater health insurancne and additional top up plan.