Bengaluru Techie Earns Rs 1.8 Lakh A Month, But ICU Emergency Leaves Him Scrambling For Cash

A monthly salary of Rs 1.8 lakh and regular investments of Rs 80,000 would usually suggest that someone is financially comfortable. But a Bengaluru-based tech professional realised how misleading that assumption can be when his father was suddenly admitted to the intensive care unit (ICU).

Recounting the incident on Reddit, the techie said the emergency happened about two years ago. At the time, he earned Rs 1.8 lakh a month and invested Rs 80,000 through systematic investment plans (SIPs). He also lived in a gated society in Bengaluru.

Then his father collapsed and had to be rushed to the hospital. The family was asked to deposit Rs 2.5 lakh for the ICU admission. That was when the problem surfaced.

Rs 32,000 In The Bank When Rs 2.5 Lakh Was Needed

The techie said he had only about Rs 32,000 lying in his savings account. His credit card was also of little help as he had recently used a large part of its limit to buy a laptop, according to a recent report by Hindustan Times.

He had investments, including mutual funds, but those were not money he could immediately hand over to the hospital in the middle of the night.

He eventually had to call relatives and arrange funds through UPI to meet the hospital requirement.

A regular saving and investment habit does not always mean there will be enough cash at hand when an unexpected expense suddenly comes up. Long-term investments have a purpose, whether it is retirement, buying a house, or building wealth. But money set aside for an emergency has a different role. It needs to be available at short notice and without forcing the family to sell investments or borrow.

Salary And Investments Do Not Replace Emergency Savings

There is no single emergency-fund amount that suits everyone. Someone who is the sole earner, supports ageing parents, or has an irregular income may need to keep more money aside for emergencies than a person with fewer dependants or commitments.

Financial planners often advise setting aside enough to cover a few months of essential expenses, with the money kept somewhere it can be withdrawn without much difficulty. The exact amount will depend on monthly spending, dependants, insurance cover and job security.

Health insurance can take care of a large part of hospital expenses, but families may still need cash at the time of admission. There can be deposits to pay, exclusions under the policy, non-medical expenses or costs that have to be settled before a claim is processed.

The techie’s experience also points to a mistake that can easily happen when investment goals take priority over cash reserves. Putting a large part of the monthly surplus into SIPs may help build wealth over time, but it can leave little breathing room when an unplanned expense arrives.

A strong investment portfolio matters. So does having enough money in hand when the family needs it immediately.

FAQs

1. Why is an emergency fund important even if you invest regularly?
Investments may be meant for long-term goals and may not always be convenient to access immediately. An emergency fund provides ready money when an unexpected expense arises.

2. How much should you keep in an emergency fund?
There is no fixed amount for everyone. It should depend on essential monthly expenses, number of dependants, insurance cover, income stability and other financial commitments.

3. Is health insurance enough for a medical emergency?
Not always. Families may still need cash for admission deposits, exclusions, non-medical expenses or costs that have to be paid before a claim is settled.