What amount is sufficient for emergency corpus?

How should one decide the amount to be maintained in the emergency corpus? How much would be sufficient?
- Karan

There is no thumb rule, and I am nobody actually to answer it. You have to get your answer yourself, or you have to figure it out yourself, and I urge you to do so.

The reason is, if you have old parents, they might require some medical attention, and hence you need a different scale of the emergency fund. If you have young children at home, you need a different scale of the emergency corpus. Moreover, how safe is your job, or what is the reliability of your income? If your income is very erratic, you earn very well once in a while, and then once in a while, you don't earn anything, you need a larger emergency fund. So these are the inputs to consider for deciding the amount of emergency corpus you should maintain.

This article was originally published on October 29, 2021.