Insurance Planning Services in India

 Have a contingency fund

 Consider these situations: you are in between jobs and it will be at least a month before you start the next assignment; you want to take a sabbatical to finish your MBA; or, a family member is ill and needs your attention. Such situations mean that you need an emergency fund in place so that even if you are not earning, regular expenses are taken care of. The general rule is to keep aside three months’ expenses. So figure out what your average monthly expense is. This should include not only your household expenses but also equated monthly instalments, a child’s education fees, among other things. “The thumb rule of keeping aside three to four months’ expense as reserve applies to single parents as well to address unforeseen circumstances such as a loss of job or leave without pay. Consider liquid mutual funds to build the contingency fund,” said Deepali Sen, a certified financial planner Insurance Planning Services in India, and founder and partner, Srujan Financial Advisers LLP.