Emergency Planning

What is Emergency Planning?

 

Emergency Planning is about setting aside funds to handle unexpected life events like:

•Job loss

•Medical emergencies

•Major home or car repairs

•Sudden travel or family crisis

 

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✅ Why It’s Important:

•Avoids dipping into long-term investments

•Prevents debt or loan burden during emergencies

•Gives peace of mind during uncertain times

 

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💡 Ideal Emergency Fund:

•3 to 6 months of your essential monthly expenses

•Kept in liquid, easily accessible instruments like:

•Savings account

•Liquid mutual funds

•Short-term FDs

 

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💸 What is Cash Flow Planning?

 

Cash Flow Planning is the process of tracking your income and expenses to ensure you:

•Live within your means

•Have enough surplus for saving and investing

•Avoid unnecessary debt

 

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🧩 Components:

1.Monthly Income Tracking (salary, business, rent, etc.)

2.Fixed & Variable Expense Management

3.Budgeting & Saving Discipline

4.Debt Repayment Planning

5.Cash Surplus Allocation