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Money Saving: You will not have to ask anyone for an emergency fund in bad times, use your salary using the 67:33 formula..

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Bad times never come with any warning. In such a situation, money is needed first. A middle-class family does not always have enough money to handle a sudden problem. In such a situation, either one has to take a loan or has to borrow money from someone. But if you apply a formula to your income, then you will not need to beg in front of anyone in difficult times. The special thing is that if you manage your income under this formula even for just 2 years, then you can accumulate a very good emergency fund. Know how!

Know what is the formula
This formula is 67:33. To apply this formula, you will have to divide your income into two parts. These parts will be in the ratio of 67:33. Out of this, you have to save 33% of the part and invest it and with its help, prepare an emergency fund for yourself and your family. You can spend the remaining amount according to your wish. For example, if you earn Rs 50,000 per month, then you will have to divide your salary into parts of Rs 33,500 and Rs 16,500. Out of this, you will have to take out Rs 16,500 as savings and you can use Rs 33,500 according to your wish.

How much should be the emergency fund?
Financial expert Deepti Bhargava says that usually it is said to create an emergency fund for six months, but you should create an emergency fund for at least 1 year. This fund should be equal to your monthly expenditure for one year. If your monthly household expenditure is Rs 33 thousand, then you should have Rs 3,96,000 i.e. about Rs 4 lakh as an emergency fund. The more money you have in difficult times, the better it is for you.

An emergency fund will be added in 2 years
Suppose your salary is 50,000 from which you save Rs 16,500 at the rate of 33% every month for two years continuously, then in two years, you will have collected Rs 3,96,000. But if you want, you can also collect more funds from the same savings in two years. For this, you will have to start a two-year SIP from the savings amount. If you run a SIP of Rs 16,500 for two years and get an average return of 12%, then you will get Rs 53,513 as interest on an investment of Rs 3,96,000. In this way, you can add Rs 4,49,513.

Try these methods to save money sooner than 2 years
At the beginning of the job, focus more on creating an emergency fund for yourself before saving money and take out as much money as possible as savings. If you get an incentive during your job or any kind of bonus money comes into your account, then instead of spending it, put it in the emergency fund. This will help you accumulate your funds even faster.

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