Establishing an emergency fund is crucial for financial stability, allowing individuals to manage unexpected expenses without disrupting their daily finances. Experts recommend the 3-6-9 rule, which advises saving three months of expenses for singles, six months for those with dependents, and nine months for individuals with irregular income. To determine the necessary corpus, individuals should list their non-negotiable monthly expenses, such as bills and loans, and multiply this total by the appropriate factor. For instance, if monthly expenses are ₹25,000, a six-month fund would total ₹1.5 lakh (roughly $1,800 USD). Building the fund can begin with small, consistent contributions, and it is advisable to automate savings to reach the goal efficiently. Additionally, the fund should be invested wisely, with 30-40% in easily accessible options like savings accounts and 60-70% in low-risk debt instruments such as liquid mutual funds. This strategy ensures the fund remains liquid for emergencies while providing some growth potential.