New Delhi, Aug. 7 -- Individuals looking to future-proof their finances against emergencies or expensive but unforeseen turn of events, must build an emergency "rainy-day" fund to protect their savings from sudden drain during extenuating circumstances. As to what constitutes an emergency, this could include any sudden and large costs such as a car repair or medical bill.

Experts note that sound financial planning includes provision for an emergency fund that can help tide over such sudden needs without straining your daily finances and while keeping your usual savings separate.

Today, we explain the 3-6-9 rule that salaried individuals and even those without stable income can use to build their savings for a rainy day or to safeguard a...