Emergency fund as the name suggests is the money that you would touch when you have an emergency.
Emergencies could be :
Medical Emergency Job loss etc… What is an emergency fund ? Emergency funds help you take care of the financial aspect of the emergency. During COVID-19, there were many people who have lost jobs. Job loss could be reasons out of your control and therefore it is imperative that you are prepared for it.
PPF Benefits 1. Loan against PPF If you take a loan against your PPF, this is 1% above the interest that you get in your PPF account. This has been reduced from 2% to 1%.
Interest is levied from 1st day of the month in which loan is taken to the last day of the month in which last installment is paid
2. Premature closure of PPF account If you would want to close your PPF account prematurely, you need to fill Form 5 for this.
I was so excited! My first job. This actually would mean independence. This would also mean that I would have a bank account and there would be a number bigger than 0 in my account. However, with the uncontrolled expenses, my bank account quickly got depleted as soon as my salary came in. Thankfully maturity came and as years passed by, I started gaining different types of assets including a house, a car, few more savings account, a fixed deposit, mutual fund , stocks etc…