One Bad month Can Undo Five Good years. Do you know why?
Someone works hard for five years. Builds a disciplined investing mindset, saves regularly. Suddenly one thing happens - a layoff, a health issue, a sudden family crisis. Within three to four months- he stops the SIP, withdraws FD, may even take a personal loan to handle finances. Five years of effort undone faster than it was built.
A recent survey found that 55% of working professionals in India are not financially prepared to handle even a few months without a salary. Not because they aren’t earning enough. Because nothing was structured between them and the storm.
That buffer has a name, Emergency fund. Three to six months of your monthly expenses, parked somewhere liquid and untouched. Not invested in equity, not locked in an FD but just available instantly, when life stops being predictable.
Think of it like a spare tyre in your car. You hope you never use it. But the day you need it and don't have it, nothing else matters in that moment.
Before the next periodic Investment, build the cushion first.
Rahul Karandikar
After two decades in technology, Rahul now works with individuals and families who want to think about money with clarity, patience, and a long-term perspective.
