Emergency Fund 2.0: Why Families Need an Income Buffer Along With a Cash Buffer
New Delhi, Aug. 17 -- Most financial planners recommend keeping at least six months of expenses as an emergency fund. For a family with EMIs, school fees, insurance premiums, and regular household expenses, this could mean maintaining around Rs. 6 lakh to Rs. 8 lakh in a liquid and easily accessible form.
This remains essential. But in an environment where layoffs, career breaks, and longer job searches have become more common, families may need to think beyond a cash reserve.
Financial commitments do not stop when a salary does. Home loan EMIs, children's education, insurance premiums, rent, and household expenses continue every month.
This is where an income buffer can help.
An income buffer is a portfolio built gradually to generat...
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