He then had to call up relatives in the middle of the night to borrow cash via UPI. Because of redemption timelines and delays involving the third-party administrator, his primary credit card was already maxed out after a laptop purchase, while the money invested in mutual funds was not immediately accessible. At the time, his savings account had only around Rs 32,000.
See the post here: The experience left him with a difficult realisation. Despite earning a substantial salary and investing aggressively, he did not have enough liquid money to deal with an emergency. The post sparked a discussion among young professionals about the importance of maintaining an emergency fund alongside investments. Several users pointed out that emergency savings should ideally be built before putting a large portion of one’s income into long-term investments. They recommended keeping roughly six months of essential expenses readily accessible, while also having adequate health insurance and term insurance. Others questioned whether lifestyle spending had contributed to his financial vulnerability. One user asked, “Bro, didn’t you have any emergency fund? Another commented, “Sorry you had to go through this. But an 80k monthly SIP with just 32k in savings is not a practical investment decision. If you don’t want to take medical insurance, then this pool must be really high.”
I used to invest in arbitrage funds, but then I found that by being invested in liquid funds, I can cash out within 10 minutes for emergencies. Always keep at least 3 months of salary as savings. A third added, “Finance 101 emergency funds are at least worth six months’ expense.
