New Delhi, May 7 -- When financial planning it is key to have an earmarked investment for emergency or "rainy" days, i.e. money set aside for unexpected situations. The key here is to keep your emergency fund separated from your regular savings to protect it from sudden withdrawals such as job loss or an expensive medical bill.

The aim of your emergency fund is to help tide over sudden needs without taking loans or borrowing. It helps build flexibility to handle an unexpected turn of events without putting immediate stress on your day-to-day finances.

The thumb rule to deal with situations without immediately acquiring debt is collecting equivalent of three to six months of expenses, suggests Clear Tax. It added that for those in more u...