With Tech Layoffs happening around the world, now having the emergency fund is like a silver bullet. Though some companies are giving the severance pay upto the notice period but some companies are not giving that and asking people to resign then and there and that's why the severance pay is not available.
PC: Pixabay.com
So that's why if you get the severance pay or not, having the emergency fund is important now. Having 6 months of emergency fund is required now, because what I heard from some of my ex collegues that the market is little dull and thus you might have to spend some time in getting the job. You can get in 1 month or you can get in 6 months also. So having that 6 month buffer give you that cushion which cab help you survive.
And in that 6 months you will find out what you want to do. Whether you want to continue the job, start a business or even think of changing the domain. And having 6 months of emergency fund gives you that breathing time and also you don't have to worry about the money any more. For me I have around 3 months of emergency fund is there. And now slowly I am building the emergency fund for another 3 months. So that I will have total of 6 months of emergency fund.
If the company gives the severance pay for 3 months, then I will have 9 months of energency fund which is quite good. If I get the job in less time, then also it is good and if it takes some time then also it's ok. Now people are actually understanding the importance of emergency fund because they are seeing the benefit of it. So if you don't have the emergency fund, try to start saving as little as possible and continue till you get the sizable income.
Posted Using INLEO