A runway serves two purposes: taking off and landing. Pilots rely on it at the beginning of the journey and at the end.
Your finances aren’t any different. Emergency savings act as your personal runway in two crucial situations:
Takeoff – They give you the confidence to invest and grow, knowing you have a cushion if things go wrong.
Landing – They provide a smooth descent if your paycheck stops or if an adverse situation arises, so that you don’t face a rough landing or even dangerous crash.
Just like planes can’t fly without runways, wealth-building can’t happen without a financial cushion. And this is exactly where good financial planning can ensure that you have adequate emergency savings, while being able to focus on growth
Financial planners recommend 3 to 6 months of household income.
3 months works if you have a dual-income household, stable employment, and low liabilities.
6 months (sometimes more) is safer for single-income families, those with children, or professionals working abroad where job transitions take longer.
But here’s the thing: keeping too little or too much is equally harmful.
Too little = one job loss or medical bill can wipe out your savings and push you into debt. It’s like a runway that’s too short, you can’t land safely.
Too much = if you park a year or more of income in low-return accounts, your money sits idle instead of compounding. That’s like building an unnecessarily long runway but never flying.
The sweet spot is 3–6 months of income, liquid and accessible.
The goal is liquidity; being able to access funds in less than 24 hours.
Here are smart options to balance access, safety, and modest returns:
Savings Accounts – Immediate access, zero risk. Keep at least 1–2 months here.
Fixed Deposits (Short-Term) – Slightly higher returns, with premature withdrawal flexibility.
Gold Accounts (20–25%) – A partial hedge against uncertainty, but don’t over-allocate because gold prices fluctuate.
National Bonds / Government Savings Schemes – Secure and reasonably liquid.
FCNR Deposits (Foreign Currency Non-Resident) – For NRIs, these protect against currency risk while offering access.
A blended approach works best: instant access for true emergencies, with the rest earning modest returns while still liquid.
Imagine a plane coming in to land and finding no runway beneath it. At best, it’s a rough landing. At worst, it’s a crash.
That’s what happens when families face emergencies without savings. The consequences go far beyond stress:
Immediate Panic – One sudden expense can push you into debt or force you to liquidate investments at the wrong time.
Debt Trap – Credit cards and loans become the default runway, and EMIs eat into future cash flow.
Wealth Disruption – Selling long-term investments early destroys compounding and delays retirement.
Risk Paralysis – Without a buffer, people invest too cautiously and miss growth. Or worse, they overcompensate with risky bets and panic when markets dip.
Lost Freedom – No savings means you can’t take opportunities — a better job, a relocation, or starting a business.
💡 Simply put: no runway = no freedom.
Most families know they should have an emergency fund somewhere at the back of their minds.
But when it comes to action, day-to-day financial needs, lifestyle wants, and the ambiguity of “how much is enough and where should I keep it?” often get in the way.
This is why a structured approach is so important. As a financial advisor in Dubai, I use the GAiM Plan to bring clarity. It cuts through the noise and answers key questions like;
📅 Want to know if your financial runway is too short, too long, or just right?
👉 Book a short call here
Because just like a pilot won’t fly without a runway, you shouldn’t build wealth without one either.