Does A 24-Year-Old Need A Back-Up Plan?

On Money Makeover, Gaurav Mashruwala, financial advisor and television commentator, shows you how to get rid of debt, manage your money, spend and save wisely. In the second episode, he elaborates on the need and importance of a contingency fund.

A sudden and unknown emergency brings shock, anxiety, frustration, tension and above all, helplessness. People tend to plan for their children's education or marriage, buying a home and retirement. However, very few people plan for an emergency, points out Mashruwala.

Mashruwala comes across Nachiket Pai, a 24-year-old trainee chef from Mumbai who had an annual income of Rs 2.5 lakh but has recently lost his job.

Mashruwala calms him down and offers his quick, simple solution that seems enough to resolve his personal finance query. He shows him why we all need an emergency fund, crisis or no crisis.

Mashruwala offers golden advice to every individual who is hard working and wants to excel in his goals. He clearly conveys the important message of how to be rest assured about facing any sort of financial crisis as he says, "Meeting a crisis is not the end of the world. It's just the beginning."