3-6-9 rule useful for creating an emergency fund:Salaried workers need 3–6 months’ savings; freelancers 9–12 months

To ensure that your daily lifestyle and old savings are not affected in the event of any sudden crisis like a medical emergency, car breakdown, or job loss, it is very important to have an ‘Emergency Fund’.
Financial experts believe that true financial planning is one where an emergency fund is kept separately, so that main savings are not affected when needed. According to a report by tax and financial platform ‘ClearTax’, salaried class and people with irregular income like freelancers can use the 3-6-9 rule to prepare an emergency fund. Let’s understand how this rule works and how much fund you should build What is the 3-6-9 Rule of Emergency Fund? The 3-6-9 rule is a simple rule that tells you how many months’ worth of expenses you should save, based on your lifestyle and job profile: Additionally, if there is a serious illness in the family or a loan/EMI is ongoing, the size of the emergency fund can be increased further.
Understand with an example: How much money to deposit? Suppose your monthly essential expenses are ₹25,000: Start small, then gradually increase the fund If it seems difficult to build a large fund all at once, start with small targets. It’s also important to review the fund periodically Monthly expenses change with inflation, loan installments, or lifestyle changes. Therefore, recalculate your expenses every 6 months or a year and update your emergency fund target accordingly.