Step 2 — Safety Net Checklist

🎭 Picture this:

Raj invested ₹3 lakhs in the stock market in March 2020, right before COVID hit. The market fell 38% in 3 weeks. Then Raj lost his job. He needed money urgently — and had to sell his investments at a massive loss just when the market was at its lowest. Six months later, the market fully recovered. But Raj had already sold.

His problem wasn't the market. It was that he had no emergency fund.

💡 Rule: Never invest money you might need in the next 1–2 years. Only invest what you can leave untouched through good times and bad.

Your two non-negotiable shields

Your Shield Progress 0 of 2 complete

💰

Emergency Fund (6–12 months of expenses)

Calculate your monthly expenses (rent, food, bills, EMIs). Multiply by 6. Keep that amount in a savings account or liquid FD — not in stocks, not in crypto, not in your mattress.

Example: If you spend ₹25,000/month → Emergency Fund = ₹1.5 lakhs (6 months) to ₹3 lakhs (12 months). Keep it in a bank FD or a liquid mutual fund.

🏥

Health Insurance + Term Life Insurance

A single hospitalisation without insurance can cost ₹5–15 lakhs. A term life policy ensures your family won't be left with debt if something happens to you. These are not luxuries.

Minimum standards: Health cover of ₹10–15 lakhs for yourself (and family). Term life cover of at least 15–20× your annual income (e.g., ₹60L income → ₹1–1.2 crore cover).

⚠️

Tick both shields above

Confirm you have both an emergency fund and insurance before proceeding. This is Step 0 — you must do this before your first investment.

❓ "Can I skip this and invest anyway?"

Technically yes. But if an emergency forces you to sell your investments during a market downturn, you lock in a real loss. The emergency fund exists so your investments can stay invested through turbulence.

❓ "Where should I keep my emergency fund?"

A regular savings account (instantly accessible) or a liquid mutual fund (redeemable within 1 business day). Never in stocks or locked FDs. The whole point is instant access.

🧭

Now let's find your path.

Two quick questions to figure out whether you should be a passive investor or an active trader.

Next: Find My Path →

Build your Safety Netbefore anything else.

Your two non-negotiable shields

Emergency Fund (6–12 months of expenses)

Health Insurance + Term Life Insurance

❓ "Can I skip this and invest anyway?"

❓ "Where should I keep my emergency fund?"

Now let's find your path.

Build your Safety Net
before anything else.