March 2023


How to build an emergency fund using an SIP and calculate its returns?

An exigency fund is a crucial corpus that rescues in critical scenarios like job loss, accident, or any unforeseeable exigency, which need immediate monetary assistance or simple and hassle-free fund access. This is a backup you can fall on in times of financial crisis or any unforeseen situations. Here’s how you can create your exigency fund using an SIP and the measure you must adopt to compute its returns.

How much emergency fund you must create?

Every individual has distinct financial requirements. Before computing the exigency fund that you require, it is crucial for you to compute the minimal amount you would need to get through unavoidable monthly expenditures. This must involve home rent, utility bills, loan instalments, etc. Make sure that you do not involve avoidable expenditures like travel, movies, dining, etc. while computing your exigency fund requirement. Only include your monthly mandatory requirements. Once you are aware of your monthly mandatory expenditures, try and create an emergency fund that can assist you to survive at least six months if you receive no income

Where should you keep your exigency fund?

Once you have finalised your emergency fund requirement, begin working towards it. To invest to form your emergency fund, you must invest in the SIP mode in liquid funds. This is because liquid funds provide high liquidity, capital protection and better returns than other fixed income instruments like savings bank accounts, recurring deposits, or fixed deposits. Note that to compute your monthly investment to form your exigency fund, you must use an online SIP calculator. All you must do is input your overall emergency fund requirement, assumed interest rate and preferable time horizon to attain this goal. Once you input all these figures, the monthly investment requirement will be displayed instantly on the SIP investment calculator. Based on this figure, you must begin with your investment for your emergency fund. In case you are unable to understand this, read this example to get an idea.

Suppose you require an emergency fund of Rs 5 lakh within a time horizon of 2 years at an assumed rate of return of 8 per cent per annum. Now, if you input these figures into the online mutual fund investment calculator, you will find, you require to invest a monthly SIP amount of Rs 19,280 over 2 years to accumulate an emergency fund of Rs 5 lakh.

Ending note

In present times, many strive to attain financial independence before reaching the age of retirement. While this requires a fair amount of strategic investment and planning, it all starts with forming a contingency fund that can take good care of all your unplanned expenditures in the upcoming times. While it appears extravagant during usual times, during financial emergencies, it can extremely be advantageous. So, if you have not planned your emergency fund requirement, ensure to begin as soon as possible.

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Easing Your Mind With Monthly Instalments Slick Cash Loan

Installment loans are made to help customers in times of unplanned financial need. They are a quick, simple, and hassle-free way to get cash to pay for all of your unanticipated financial needs. They are a great solution to all of your financial issues. Online installment loans instant approval – slick cash loan have been a way to borrow money for a short period and pay it back over time.

Make You Feel At Peace

The loan payments are taken out of your salary in equal installments until the total amount is repaid. Over the whole payback period, the installments remain constant. It indicates that the loan repayments will be OK with your budget. It is because that predictable installments and a set repayment date will always make you feel at peace.

Slick Cash Loans in the USA provide this loan arrangement. They will undoubtedly accommodate your monthly payment plan by aligning the loan amount due date with your salary day. They will provide automatic withdrawals, let you know when your payments are due, and give you access to an online account to check your loan account.

Major Benefits Offered

These loans’ accessibility is one of their key benefits. The only thing a borrower needs to do is visit their website and fill out the online application. If you fulfill their minimal requirements, the personal loans are immediately placed into your bank account. The entire procedure comprises online applications, loan verifications, and loan approvals. Slick Cash Loans in the USA are kind and will help you if you encounter any application process issues.

These loans don’t require paperwork or a visit to their office in person. Also, they offer the borrower easy and reasonable repayment choices with which they are completely delighted. You can expand the repayment alternatives to fit your timetable. These loans are very well-liked in the USA, especially among employed ones, because there are no fees for early repayment.

What Is The Ideal Source For Seeking Installment Loans?

The internet is the ideal resource to use when looking for quick cash to meet your financial responsibilities. Slick Cash Loans provide a basic loan application form that you may complete quickly, easily, and comfortably. The loan amounts were automatically paid into your account once the data you provided has been confirmed and is believed to be accurate. It is wise to carefully study and ensure that you understand the conditions and requirements of the loan approval before completing the application form.

The loan amounts must be deposited into the bank account. The funding is placed directly in your bank account shortly after you apply or a few hours later if you meet all their standards. After receiving your loan amount, the repayment period is typically between five and fifteen days long.

Fees Associated With Installment Loans

The increased interest rate and other fees associated with installment loans are their only drawbacks. If not, the funds are made available within a banking day or a few hours after your request is granted.

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