October 4, 2025

Everyone dreams of financial freedom—long-term gains, peaceful retirement, and piles of wealth. But wait! Before jumping into investments, do you have a strong backup plan? Chartered Accountant Nitin Kaushik shakes things up by saying that without an emergency fund, your financial journey might face big bumps. Kaushik recently shared on X (formerly Twitter) that many people forget the most basic and vital step: creating a financial cushion. He told the story of a disciplined client who, caught in a medical emergency, had no emergency fund. Guess what? They had to sell their precious long-term investments at a loss! A painful lesson on why skipping a safety net can spoil years of hard work. Why does this matter? Because life throws surprises—medical bills, job losses, or urgent expenses. Without a ready cash buffer, you may lose your financial stability by dipping into investments meant for your future. So, what’s Kaushik’s golden advice? Keep at least six months’ worth of expenses stashed in a liquid fund or fixed deposit. This emergency fund isn’t just money—it’s your peace of mind. When the unexpected hits, you can easily access this money without disturbing your growth-focused investments. Kaushik emphasizes, "Financial freedom does not begin with investments alone but with financial security." A strong emergency fund means you’re ready for surprises and can confidently chase your dreams of wealth without worrying about sudden setbacks. In the end, securing your financial base is the smartest move. Build that emergency fund first, then watch your financial future soar steadily toward true independence!

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Tags: Emergency fund, Financial freedom, Nitin kaushik, Investment risks, Financial security, Wealth building,