Lesson 2 of 3 · 6 min
How much you actually need
Three to six months of essential expenses is the rule of thumb. What moves that number up, what moves it down, and why EMIs belong inside the figure.
The usual advice is three to six months of essential expenses. Essential means what you could not cut: rent, food, bills, transport, medicines, and any EMI. Not everything you currently spend.
| Your situation | Roughly how many months |
|---|---|
| Salaried, stable sector, health cover in place | 3 to 6 |
| Salaried with a large variable or bonus component | 4 to 8 |
| Freelance, gig or commission income | 6 to 12 |
| The only earner in your household | 6 to 12 |
| No health insurance | Add 3 to 6 on top of whichever line applies |
Work it out yourself
Put your own numbers in. Notice how much the answer moves when you say you have no health cover — that is the size of the risk a policy would absorb.
Emergency Fund CalculatorYour turn
Anjali spends ₹22,000 a month on essentials and pays a ₹8,000 education loan EMI. At the lower end of the rule of thumb, how large should her fund be?
Check yourself
1 / 3
Kabir asks
Ravi drives for a ride-hailing app and his income moves week to week. Where does he land on the rule of thumb?
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