Life throws surprises — a medical bill, a job loss, a broken phone. An emergency fund is cash set aside only for those. A common target is 3 to 6 months of essential expenses, kept somewhere safe and easy to reach (a savings account), not invested in the stock market where the value can drop right when you need it. Don't wait to save the whole thing — start with a small first goal (say one month, or ₹25,000 / $1,000) so a small emergency doesn't become a debt. An emergency fund is the difference between a bad week and a financial crisis.