Indian Investor Urges Three-Year Emergency Fund, Crypto Caution

Indian investor M. Dhandapani has urged families to avoid fresh loans and build an emergency fund covering three years of household expenses. He also asked crypto investors to review their digital-asset holdings as economic conditions may become more difficult.

In comments published Oct. 3, Dhandapani advised families to limit new financial commitments, including long-term borrowing for real estate or home purchases. He warned that falling income or rising expenses could increase pressure on households with large debts.

“Don’t borrow. No fresh loans. Don’t take on long-term commitments like real estate or a house purchase,” Dhandapani said. “Try your level best to create a safe reserve or emergency corpus that can cover three years of your family’s complete expenses.”

Dhandapani added that he had warned about possible financial difficulties for the past two years. “I’m no Nostradamus,” he said, repeating his call for families to build cash reserves before conditions worsen.

An emergency fund is money set aside for unexpected costs or a sudden loss of income. It can cover food, rent, medical bills and loan payments without requiring a household to take on more debt or sell investments. The Reserve Bank of India has recommended keeping enough cash to cover at least three months of living expenses, with the appropriate amount depending on income, spending and job security.

Dhandapani’s warning also applies to crypto investors, whose holdings can lose value sharply during periods of market stress. Investors who rely on digital assets to pay regular expenses may have to sell at a loss if crypto prices fall while their income or access to credit weakens.

Crypto holders can review their monthly spending, reduce unnecessary debt and assess how much of their finances is invested in digital assets. Keeping cash savings separate from crypto holdings can help investors cover short-term expenses without selling during a market decline.

Dhandapani did not call for investors to sell all their crypto. His comments focused on maintaining household reserves and limiting new borrowing before adding to higher-risk investments.