First step for Financial independence : Emergency Corpus
Dear Friend, Congratulations on your first job. Now, You are earning decent amount of money to live a lavish life and splurge as per your wish. This is one of the best phases of life. Enjoy it without any doubt. Now, comes the first step that you are looking to take to move from a carefree spender to a wise saving guy. I would suggest creating an " Emergency fund ". What is Emergency in real life? (God forbid any of these happen with anyone) It can be a Medical illness, Job termination, Vehicle repair, House repair, or any unforeseen circumstances which need urgent attention. Emergency fund is the sum of amount that you need to live with your normal expenses for 3 to 6 months. Image courtesy: Google I am providing you one example to make it clear. Suppose a guy , Gaurav, joins a company with a starting salary of Rs. 30,000/- per month. The basic expenses of Gaurav for a month is Rs. 20,000/- . This includes House rent, Grocery e