Four Bucket Formula
==> Immediate needs and emergency funds Unforseen events 6-8 months of income Investment options:- FD, Debt mutual fund ==> Small term requirements 2-4 years planned events, like travel, down payment of car etc Investment options:- FD, Debt mutual fund ==> Medium term requirements 5-7 years planned events, like down payment of home etc Investment options:- Can take some risk like large cap fund, hybrid fund ==> Long term requirements >7 years planned events, like children education etc Investment options:- NPS, PPF, Fundamental strong stocks, equality mutual fund, multi cap fund