I am a salaried employee. I want to create an emergency fund for me. How should I start and where to keep this amount? I want to invest 10-15% from my salary towards this monthly. My target is to create a sum of 75000 in 6-8 months.
Sandy-If your time horizon is 6 months to accumulate this emergency fund, then use RD and accumulate it. Once it is accumulated, then split this into three parts. One into your savings account, second into Bank FDs of a year (preferably book through internet banking to have higher degree of liquidity) and final part into liquid funds.
Raise this emergency fund yearly to match your committed expenses. Ideal emergency fund must be around 6-12 months of expenses.