Emergency Fund — Your First Wealth Brick
The emergency fund is the foundation of every financial plan. It absorbs income shocks — job loss, medical bills, urgent travel — without forcing you to liquidate growth assets at the wrong time or borrow at punitive rates.
Default rule: 6 months of committed outflow (rent, EMIs, insurance, essentials) in a liquid bucket — a sweep-in FD or liquid fund. Single-income households or freelancers should target 12 months. Dual-income salaried households can run 3 months as a floor.