Financial Emergency is like a laddoo, if swallowed like a novice, its going to be your undoing. Thats why you normally get gyany responses like “bite only as much as you can chew” etc.. To get rid of half gyan you have accumulated through the years this post tells you “how to wolf down a laddoo”. The principles are applicable for financial emergencies too 😉 .
Steps to wolf down laddoo and financial emergency:
First, be aware of your limitations. If you dont have large mouth, then you cant wolf down a whole laddoo. Similarly if you dont have large emergency corpus, you cannot say “Its clobbering time!!!” to a financial emergency. There will be numerous thumb rules on this, Some will be stating 3 month income, some may tell based on health insurance covers etc.. After all people have multiple thumbs then their thumb rules is expected to be plural. Hence the factors to follow will be. Bigger the corpus is better. Life experience determines the size of corpus.
Your life experience determines the size of your emergency corpus.
Second, Swallow it whole if you can. If the laddoo is smaller than than area available in your mouth, you can swallow it whole, if bigger then you need to chew a part of it. One of the caveat here is that a laddoo cannot occupy the whole space available in your mouth, that would not leave any room for it to be crushed. Same way go for a credit if financial emergency is bigger than your emergency corpus, otherwise swallow it whole. The thing to be noted here is that, minimum balance restrictions should not get broken in process of doing so.
Third, Crush it. Many people often get into josh and leave the laddoo as it is, and try swallowing. A whole laddoo is bigger than food pipe hence it does cause trouble if left as it is. So go and crush it with impunity. Similarly a financial emergency should be crushed into smaller chunks.
Finally, slowly digest it over the course of time. Once laddoo is crushed in mouth you can slowly relish it. Similarly after financial emergency is over, the corpus too needs to be restored back into shape.