How to create a suitable contingency fund

Stephen King has rightly said, “There’s no harm in hoping for the best as long as you are prepared for the worst".

Most of us don’t have a crystal ball to peep into the future, so it’s imperative that we set aside four-six months’ expenses to tide over circumstances which may happen outside our plan or expectations and, it has to be done when things look normal. We have seen ants collect extra food for the rainy days when they may not be able to step out to fetch food.

Emergency funds are alternatively referred to as ‘contingency funds’ or ‘rainy day money’. It is that money which prevents our goal-based planning from getting derailed or defaulted on EMIs or not being able to honour my investment installments, or not being able to meet my routine expenses. It works towards ensuring that you don’t need to borrow money from friends or parents or take a personal loan.

To understand more about how you can plan your contingency fund contact us at hello@wealthclockadvisors.com or +91 9702233617

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