Keep your Emergency Fund Liquid
Covid-19 has made us all learn many lessons, primarily being-in trying times like these, one must have an emergency fund for sudden needs such as medical treatment or an income loss. Although friends and family may be the go-to resorts for funds, one can make a provision for the same in their financial planning and make one’s position more profound. Here are few of the ways to overcome the emergency situation-
1.Create an Emergency Fund:
It is always advisable to be prepared financially for emergencies. There should be an earmarked fund which will not be touched for any other expense. An emergency corpus could be equal to six months’ take-home salary of the individual so that the routine monthly expenses are taken care of.
2.Liquidation of corpus:
Cash is the easiest form to access, and withdrawal of liquid fund is also not that difficult. You can place a redemption request on the mutual fund portal by quoting the folio number within the prescribed cut-off time and get the funds credited to the registered bank account on the same business day. Among other options-some fund houses also provide ATM facilities for withdrawal from liquid funds. Premature closure of FDs is also possible with some penalty levied by the bank.Continue Reading