Harun Raaj & AssociatesHarun Raaj & Associates

Wealth · Liquidity

Emergency Fund Check

How many months of runway you should hold in liquid, capital-safe money — by job type, adjusted for dependants — and whether you already have it.

Your monthly position

Job type & current fund

6 months base for salaried — private + 1 month for dependants above 1 = 7 months

Fund verdict

BUILD THE FUND

You need ₹4.00 L more for 7 months of runway

Fund coverage43% of target
0%100%

Short by ₹4.00 L — about 4 more months of take-home to set aside.

Monthly need (take-home, conservative)

Take-home as the runway base; expenses + EMIs are the floor when income is irregular

₹1.00 L

Required fund (7 months)

7 months = 6 (salaried — private) + 1 (dependants)

₹7.00 L

Current liquid savings

₹3.00 L

Gap / surplus

You are short

₹4.00 L

Where to park it (generic instruments)

  • 1–2 months of runway: in a savings account — instant access, zero risk.
  • The rest: a liquid fund or sweep-in FD — targeting roughly 3.5–4% post-tax, T+1 redemption, no lock-in. Never equity.
  • Only surplus beyond the target: belongs in longer-horizon investments.

The emergency fund is for job loss, medical shock, and repair — not for market timing. Capital preservation beats yield here.

Why months vary

Government employment has statutory job security; private salaried roles carry notice-period risk; self-employed and business income is lumpy and unprotected — hence 3 / 6 / 9 / 12 months, plus one month per dependant above the first. These are planning benchmarks, not statutory requirements.

This tool is informational. Consult a SEBI-registered investment adviser for personalised advice.

Hub Guide · Wealth Structuring

Go deeper — the Wealth Structuring hub

An emergency fund is the floor — the wealth hub covers the full stack: liquid vs long-term asset structuring, HUF/trust planning, FEMA compliance, and estate readiness.

Open the guide →