Why Six Months, Not Three, and Not Twelve
The three-month rule came from an era of stable government jobs and joint families that absorbed financial shocks. Neither condition is as reliable as it once was. A 2023 report by the Centre for Monitoring Indian Economy found that urban salaried employment remains volatile, with layoffs in tech, media, and retail hitting mid-income workers hardest. Three months of savings covers a short illness or a car repair. It does not cover a job loss, which in India's current market takes an average of four to six months to resolve, and that's for someone actively searching from day one.
