The Economic Times

No emergency fund? CA explains why your first Rs 1 lakh can be more valuable than higher returns

CA Nitin Kaushik says the first Rs 1 lakh in an emergency fund can offer more financial security than chasing higher returns. He warns that without savings, income loss can lead to debt and forced investment sales. Kaushik recommends automated savings, separate accounts and gradually building a three-to-six-month buffer. He also urges people to diversify income through additional skills or modest income streams.