Let’s Talk Money, Let’s Talk Emergency Funds

Start With Safety: Build Your Emergency Fund First

Author

Jithin VMadathil
April 25, 2025

This week, I’m sharing practical insights from Let’s Talk Money by Monika Halan—specifically on emergency funds.

Before diving into mutual funds, stocks, or long-term goals, Monika emphasizes a crucial first step: creating a financial safety net.

An emergency fund isn’t just a buffer—it’s the foundation of financial peace. In a world of uncertainty, it’s what buys you freedom and time when life throws a curveball.

Monika Halan is a trusted personal finance writer, speaker, and author who helps families make sound money decisions.

She is the founder of Dhan Chakra Financial Education. Monika has worked across leading media organizations in India, including Mint, The Economic Times, and The Indian Express, and has hosted several personal finance TV series on NDTV, Zee, and Bloomberg India.

Here is 7 snippets from the book on how to Secure your present before planning your future

  1. 1.Keeping money ready for an emergency is important. 

  2. The unwillingness to take risks also comes from this fear of not having the money when it is needed

  3. We all need an emergency fund. This is a fund that will only be used in case of a financial emergency. 

  4. We want to be able to access this money quickly with no loss in value. 

  5. People familiar with mutual funds can use what are called short-term debt funds to build an emergency fund. 

  6. If you are banking with a bank that allows flexi-FDs that allow you to sweep out just the amount you need, rather than breaking the entire deposit, go for that. 

  7. Else split your emergency fund into smaller FDs so that you don’t have to lose the interest on the entire deposit.

P.S. I’d love to know: What is the single snippet above that sounds most interesting or impactful to you?