What Does Emergency Fund Planning Mean for NRIs?

An emergency fund for NRIs (Non-Resident Indians) is a pool of money that is set aside to cover unexpected events. It helps cover expenses during unforeseen circumstances without withdrawing long-term savings or taking unnecessary debt. It may cover medical treatments for relatives, urgent trips to India, job loss, or income disruption, etc. 

Usually, it is advised to keep 3-6 months of living expenses aside. However, for NRIs, keeping aside a target range of 6-12 months of essential living expenses would be more suitable. While calculating the emergency fund target amount, you must include expenses for both abroad and in India. In this blog, we will learn more about what emergency fund planning means for NRIs.