What is an emergency corpus?

You can guard your savings and investments against uncertainties by creating a strong emergency corpus.

What is an emergency corpus?

An emergency corpus can be made by keeping aside a certain percentage of your annual income to use only during emergencies.

Where can you put this money?

Ideally, this amount should be kept in your savings bank account. This is because, during an emergency, you don’t have to worry about the hassles of redeeming your investments.

What can be the ideal size of an emergency corpus?

Ideally, your emergency corpus can amount to seven to ten months of your annual salary.

What can having an emergency corpus ensure?

Having a strong emergency corpus can ensure that you don’t have to compromise on your regular life and financial goals during an emergency.

What to do after you have used a part of your corpus for an emergency?

Once you have used a part of your emergency corpus, you can put back money when you earn your next month’s salary. You can also accumulate it little by little once again.

When should you start investing in them?

You can start investing once you have created your emergency corpus.

This is all about creating an emergency corpus. However, with an emergency corpus, you can also buy health insurance to have a stronger guard against medical emergencies.

Do you want to know why buying health insurance is important before you start investing? Keep reading to know.

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