When I first heard the term “emergency fund,” I didn’t pay much attention. I thought, I don’t earn much — how can I save extra? And anyway, what could possibly go so wrong that I’d need one?
I was wrong. Life doesn’t warn you before it hits hard.
A few years ago, I was living paycheck to paycheck. My salary covered rent, groceries, a few outings — and barely anything else. Saving felt like a luxury. But after a close friend went through a medical emergency and had to take a loan with heavy interest, I had a wake-up call. That could easily be me.
The Beginning: Small Steps Only
I didn’t start with a huge amount. I simply committed to saving ₹500 a week — no matter what. I treated it like a bill that had to be paid. I opened a separate digital savings account and nicknamed it "For Emergencies Only." No touch, no excuses.
I also started tracking my daily expenses. Once I knew where my money was leaking — random snacks, subscriptions I didn’t use, impulse online orders — I began cutting back, and redirecting that money into my emergency fund.
Slowly, ₹500 turned into ₹1,000 some weeks. Then I got my first freelance gig, and I put that extra money straight into the fund. Within 8 months, I had saved ₹40,000 — and I felt something I hadn’t felt in a long time: peace of mind.
The Crisis Hits
Then it happened. My company suddenly downsized. My position was cut, and I was out of a job.
Of course, panic tried to creep in. But I had 3 months of living expenses saved. I didn’t have to borrow money. I didn’t have to make desperate decisions. That emergency fund gave me time — time to breathe, update my resume, apply for new roles, and even take up a short course to upskill.
In just 2.5 months, I landed a better-paying job.
Lessons I Learned
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It’s not about how much you earn. It’s about how committed you are to saving.
Even tiny amounts add up when done consistently. -
Having an emergency fund isn’t optional. It’s essential.
Especially in a world where job security and health costs are unpredictable. -
Peace of mind is priceless.
Knowing you’re prepared changes how you deal with stress and setbacks.
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