• Disclosure
  • Privacy Policy
  • DMCA Policy
  • CCPA
  • Medical Disclaimer
Sunday, February 5, 2023
SLC Metro News
  • Home
  • News
  • Business
  • Technology
    • Crytpocurrency
    • Gaming
    • Gadgets
  • Sports
  • Health
  • General
    • Business Services
  • Travel
  • Press Releases
  • Popular
No Result
View All Result
  • Home
  • News
  • Business
  • Technology
    • Crytpocurrency
    • Gaming
    • Gadgets
  • Sports
  • Health
  • General
    • Business Services
  • Travel
  • Press Releases
  • Popular
No Result
View All Result
No Result
View All Result
Home Business

Five Tips To Build Emergency Corpus For Uncertain Times – ET Now

five-tips-to-build-emergency-corpus-for-uncertain-times-–-et-now
Share on FacebookShare on Twitter

Representational Image

Five tips to build emergency corpus for uncertain times&nbsp

New Delhi: After going through the unprecedented lockdowns and massive health crises in the wake of COVID-19, it is quite clear that emergencies can occur anytime without any warning signals. This is the biggest reason why people have grown more conscious about prudent money management and creating emergency funds.

According to financial planners,  the size of an individual’s emergency corpus should be equal to four-six months of their monthly expenses. For example, if your monthly expense is Rs 50,000, then the size of your emergency corpus should be anywhere between Rs 2 to Rs 3 lakh. This amount should be parked in such a place from where you can withdraw at a short notice without erosion in the capital.

Follow these steps to build your emergency corpus:

1. Trim your expenses: The first step is to cut out unnecessary expenses so as to save more for the contingency fund. Cutting down on the non-essential expenses like eating out frequently, impulse shopping, etc. will allow you to get to your saving goals quicker, and maybe even increase the monthly allocation. Instead of eating out on a weekly basis, cut it

down to one or two outings a month, watch movies at home instead of cinemas, limit non-discretionary online shopping, etc.

2. Reallocate lumpsum receivables: Have you received a bonus at work, got a tax refund, or cash gift from a friend or a relative? Set aside a small amount to enjoy yourself, and allocate the rest to your emergency fund. Adding any windfall gains can really help fast-track your goals. Rather than increasing your expenses with an increase in salary, increase your contribution to the emergency fund, retirement corpus.

3. Profit booking, portfolio rebalancing and Consolidating properties: Markets are high and valuations are up. At this point, some amount of tactical asset allocation can help you out when the situation changes to cautious. If you have a property lying around that is not financially rewarding, selling it, even if one were to exit at a 15% discount to market price, will help create that extra cash balance for uncertainties. If there has been an ongoing negotiation for a property, this would be a good time to consider selling it and increasing the liquidity position.

4. Security and Accessibility: While creating emergency fund, remember that the money in this fund is to help you through a tough situation which means that you cannot deploy it anywhere where there is risk of capital erosion in the short term. This means that equity/equity-based mutual funds or any other option with a proportionately high risk should be avoided at all costs.

Another key point to remember is that most emergencies strike fast and if you do not have timely access to your emergency fund, it is pointless. So, ensure that the funds are conveniently accessible so that you can take care of immediate expenses.

5. Reducing debt and EMI burden: If you are one of those employees who have received a bonus for the past financial year, or an increment in salary, then it would be good to use to extra money to reduce your debt. You can prepay your personal loan, auto loan or credit card loan. Once you have one less loan to worry about, you can put more money towards building your emergency corpus.

Because of the pandemic, work from home has become the new normal. If your company is also having you work from home, moving back to your hometown from where you live on rent will mean that you can save rent money and use that amount to build your emergency fund.

Get the latest investment tips at Times Now and also for more news on money saving tips, follow us on Google news.

SLC Metro News

© 2021 SLC Metro News

Navigate Site

  • Disclosure
  • Privacy Policy
  • DMCA Policy
  • CCPA
  • Medical Disclaimer

Follow Us

No Result
View All Result
  • Home
  • DMCA Policy
  • Medical Disclaimer
  • Privacy Policy
  • Disclosure
  • CCPA
  • Terms of Use

© 2021 SLC Metro News

We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept All”, you consent to the use of ALL the cookies. However, you may visit "Cookie Settings" to provide a controlled consent.
Cookie SettingsAccept All
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDurationDescription
cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
SAVE & ACCEPT