Emergency Funds Decoded: Why Your Monthly Income Isn't the Only Benchmark

Let’s cut to the chase—emergency funds have been one of the most interpreted financial concepts out there. Some say 3 months of income, others say 6, and some stretch it to 12. But is income alone the right yardstick? Let’s unpack this in simple, relatable terms.

What Really Is an Emergency Fund?

At its core, an emergency fund is just that—a stash of money kept aside for unexpected needs. And before we go too far—medical emergencies should be covered through cashless health insurance (we’ll tackle that in a separate post). What we’re discussing here are life’s everyday surprises—some light, some medium, and a few real heavy hitters.

Let’s Start Light: The Featherweight Emergencies

Think of these as the unexpected yet manageable expenses:

A cousin’s sudden wedding back in your hometown
A last-minute dental root canal (hello, no dental insurance in India)
Mom’s cataract operation
Your child’s school trip to Udaipur
That unavoidable college reunion
Wife’s best friend's wedding (and that outfit shopping!)

These are not “life-or-death” events, but they do demand cash on call. Most of us swipe our credit cards and think: “I’ll cover it next billing cycle.” But wait—what happens when…

The Curveball Emerges: Two Emergencies Back-to-Back?

Suddenly, your credit card bill isn’t just one event deep—it’s stacking up. That’s when people resort to EMIs to pay EMIs. And here’s where the real damage happens—it starts eating into your SIPs and savings. One moment of emergency has a cascading effect on your long-term goals.

The Hardball Zone: The Real Financial Stressors

Now picture this:

A job loss that drags for months
Extended client payments for your business
A bad monsoon season for a farmer

These are not rare. These are real. And here’s the hard truth—such emergencies can derail finances for 12–18 months or more. Any attempt to solve them using credit card rotation strategies is like pouring water into a bucket with a hole. It simply doesn’t work.

At VISO, we don’t sell fear. We sell clarity.

The VISO Way: Grounded, Real-World Financial Planning

We understand that emergencies aren’t one-size-fits-all. That’s why we don’t just look at your income—we look at your life. Your spending patterns, family setup, job profile, lifestyle preferences. We take the real stories from people just like you, blend that with financial discipline, and craft a balanced solution.

We won’t ask you to cut down your weekend Mocha from your favourite café just to build your emergency fund. But we will walk with you to build it smartly.

How Much Emergency Fund Should You Really Have?

Here’s a smarter formula:

Featherlight fund: 1–2 months of expenses in a liquid savings account (for weddings, travel, repairs)
Hardball cover: 12–15 months of critical expenses, invested in safe instruments
Inflation buffer: Add 2–3 months on top as a cushion

Final Word: It’s Not About Fear. It’s About Balance.

Let’s not overcomplicate things—we’ll never have answers for every situation. But we can prepare with perspective. That’s what VISO does. We blend financial sense with real-world emotion.