Money Tips: If you do a private job, then memorize this formula, even if you lose your job, you will not have to worry about money..

35-year-old Mukesh works in a private job. He has many responsibilities towards his family, which are fulfilled by his salary. But one day he lost his job and had to remain unemployed for about 5-6 months. Even in these circumstances, none of his work stopped. He kept fulfilling all the needs of the family very easily. That is because he had always prepared himself for emergencies and had saved an emergency fund to deal with difficult times.

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Most of us talk about earning money and investing it but do not take the Emergency Fund seriously. When difficult times come, they either ask for help from others or spend the money invested for the future. Problems like job loss, accident, and illness can come in front of anyone at any time. To deal with these, it is very important to create an emergency fund. Here know the formula through which if you create an emergency fund, then even if you face a difficult time like Mukesh, it will pass very easily.

Apply this formula

According to financial experts, the 67:33 formula is very useful. 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 should save 33% of the part and with its help, you should prepare an emergency fund for yourself and your family. 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.

Create a 1-year emergency fund.

Financial expert Deepti Bhargava says that people usually ask 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 expenses for one year. If your monthly household expenses are Rs 35,000, then you should have Rs 4,20,000 as an emergency fund. The more money you have in difficult times, the better it is for you.

This is how you can quickly create an emergency fund.

At the beginning of your job, focus more on creating an emergency fund for yourself before saving money. Apart from this, 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. After creating a 12-month emergency fund, you can deposit it in your savings account or invest 50 percent of the fund in liquid funds or any other place to get higher returns.

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