A plan for dealing with unplanned expenses4 min read . Updated: 19 Dec 2016, 08:16 AM IST
We invest to meet our goals and aspirations. It is important to nurture and protect these investments from disruptive emergencies. Find out how
We save and invest to secure our future. But we may be overlooking the one thing that can undo all these efforts: an emergency. Think of the times when you had to use your already overdrawn credit card to meet a medical emergency or when you had to sell, maybe even at a loss, the investments you had been building for long to pay that equated monthly instalment (EMI) and the effect it had on your finances and goals. The way to protect your financial security is to ensure that you are in a position to meet your essential expenses and emergencies without disturbing investments and savings earmarked for future needs, even if your regular income stops or reduces for any reason. You do it by building an emergency fund.