Sizing Your Safety Net
Do not calculate 6 months of total salary; calculate 6 months of essential survival costs:
- Rent / Home Loan EMI
- Basic groceries and domestic help
- Health and life insurance premiums
- Essential utility bills (electricity, phone, wifi)
If your survival baseline is ₹45,000/month, your target emergency cushion is ₹2,70,000.
The 3-Tier Parking System
1. Tier 1 (Instant Cash - ₹30,000): In your secondary bank account with immediate ATM/UPI access.
2. Tier 2 (Same-Day Liquidity - ₹1,00,000): In Auto Sweep-in Fixed Deposits at a Tier-1 scheduled commercial bank (HDFC, ICICI, SBI).
3. Tier 3 (Next-Day Liquidity - ₹1,40,000): In low-risk Liquid or Money Market Mutual Funds with T+1 instant redemption up to ₹50,000.