New Delhi, May 10 -- Sound financial planning includes provision of an emergency fund is to help tide over sudden needs without immediately straining your day-to-day finances. Investment earmarked as emergency or "rainy day" fund should be separated from your usual savings to protect it from sudden needs such as car repair or a costly medical bill.

The thumb rule for average investors is accumulating the equivalent of three to six months of expenses. Clear Tax suggests that those with irregular income streams and other extenuating circumstances should increase their buffer to cover 9-12 months of expenses.

Experts suggest that investors aim to save at least three to six months' worth of expenses of their monthly needs. The 3-6-9 rule pr...