Financial experts suggest 3-6-9 rule for emergency funds

2 articles · Updated · Mint · May 10

The guidance says singles should save three months of expenses, households with dependants six months, and people with irregular income nine months or more.
Experts advise calculating non-negotiable monthly costs, then building the fund gradually through automated deposits, fixed deposits or SIPs while keeping the money liquid but separate from daily savings.
The report says volatile assets such as penny stocks and risky equities are unsuitable for emergency reserves, and the target should be reviewed periodically as spending patterns and financial needs change.

With inflation high, is a large cash emergency fund still the best financial strategy?

Is the 3-6 month savings rule becoming an unrealistic standard for average households?

Should you prioritize an emergency fund over paying off high-interest credit card debt?