What is an Emergency Fund? | How to build it? | Personal Finance for Beginners Ep - 1

Welcome to the first episode of our Personal Finance Series! In this video, we delve into the very first building block of personal finance i.e. emergency funds. Discover what constitutes an emergency fund, its paramount importance in personal financial stability, and why everyone needs one. Karthik Rangappa guides you through a step-by-step process on how to build a robust emergency fund, ensuring you're prepared for life's unexpected curve-balls. Additionally, he sheds light on common mistakes to avoid and highlight key points to remember, setting you on the path to financial resilience. Join us on this journey toward securing your financial future – because being financially prepared is the first step to true financial freedom!

Time Stamps
00:00 Introduction
01:16 Why do we need an Emergency Fund?
03:15 How to build an Emergency Fund?
03:20 Step 1 - Identify the amount you need for emergency fund
04:10 Step 2 - How to accumulate this amount?
04:33 Step 3 - Where to save the emergency corpus?
06:00 Points to remember
7:22 Conclusion

Links to Refer
Learn more about Arbitrage Fund here:

Learn more about investing and finance here:

Other Important Links

Social Media

#analysis #investing #finance #stockmarket #financialeducation #varsity #zerodha #personalfinance #emergencyfunds #emergency #funds #financialplanning

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Beginners Guide to Personal Finance

[gags]

Blocked 6 months of expenses in FD. As FD renews, putting the interest earned also in the FD to create larger emergency corpus, although bit by bit 😂.

[binoyroy]

Insightful video on EF.

Preferred options are:
1. Savings Account
2. FD
3. Liquid Fund

All of them in various different proportions.

[itsjustdinesh]

This is what iam looking for.. Thank you zerodha, thank you karthik rangappa sir

[lucfer]

Good initiative Karthik Rangappa! Just like the modules of Varsity.
Big fan 🙌😊

[sanjib_paul]

A gentle reminder to the video editor or the motion designer. You forgot to turn on Continuously Rasterize at 2:33 the footage looks blurry. Great visuals

[SurajJhaIn]

Thank you, I don’t have any emergency funds yet but I have decided to build it for at lest 6 month of expenses. Later I will make it 9 months

[khaleelrm]

Thanks Guru :) waiting for more in this series

[ravijaiswal]

Thank you sir for preserving our future by providing financial knowledge

[adarshtiwari]

Just started to learn...Will build such which is more than sufficient for all family members as per furthur lifestyle.

[typicalindian]

straight forward. Will definitely share with loved ones

[yashmore]

the credit card tip is great. I'd like to add - there are liquid funds which credit a certain amount (usually up to 50k) within 30 minutes

[vanadasanathkumar]

Good and knowledgeable video sir, thanks a lot and want more videos like this

[manojm]

FD will be the best instrument to park our Emergency funds, and 12 Months of Expenses is ideal number, I made my Emergency corpus last month.
Thanks to Zerodha for this beautiful series of personal finance.

[Seasonednuts-ivgd]

A very insightful video on financial security

[srinivasbabu]

it's nice information for me Thank you sir🎉

[PrashanthGiridharan]

Money market funds, liquid funds, savings bank accounts, credit cards.

[gauravkalal]

For emergency fund liquid fund is my preferred choice it gives me pice of mind.🎉 Credit card combination is good (T+1)😮😊

[romilpatel]

Can you make a guide on how to calculate upside potential of a stock with all time high price

[trijay]

Good one... Please make video on liquid funds for emergency funds

[PrinceSingh-qkvk]

Please make a complete video on ROCE (return on capital employed)