How to Build an Emergency Fund in 2023

What is an Emergency Fund?

An emergency fund ensure the financial security and serves as a safety when you have it more crises. 

#1 Determine how you can put funds aside each month

To add funds for your emergency period, you can have to save an amount without sacrificing other cruial objectives.

#2 Open High-Yield Savings Account

Open high yield savings account to park your some part your your fund for your emergency use.

#3 Automate your savings

If it possible then automate your some part of savings in a regular automatic transfer to your emergency savings account.

#4 Make Necessary adjustments to your fund

The size of an  emergency fund may need to be adjusted in your financial situation changes. So make sure your emergency fund has enough to cover your financial costs.

#5 Park some part of funds in RD

To make sure that you have a RD account (Recurring Account) and park some part of your funds in monthly dedution in your Bank's RD account.

#5 Park some part of funds in SIP/ Mutual Fund

To make sure that you have a SIP and park some part of your funds in monthly dedution in your SIP mutual fund.