Can you really save money in Nepal when you earn just enough to survive? The answer is yes — and in this guide, we’ll show you exactly how to build an emergency fund even if you’re living on a low income in Nepal.
🔍 What is an Emergency Fund?
An emergency fund is a separate savings fund that helps you cover unexpected expenses — like medical emergencies, job loss, or home repairs — without borrowing money or getting into debt.
Ideally, it should cover 3 to 6 months of your living expenses.
💡 Why is It Important in Nepal?
In Nepal, access to quick loans or health insurance is limited. Most people depend on family or expensive loans during emergencies. An emergency fund gives you financial independence and mental peace.
Real-Life Example:
Ramesh from Butwal earns Rs. 25,000 per month as a delivery driver. After COVID hit, he lost his job for 3 months. His emergency fund helped cover rent, food, and family needs — without asking for help or taking loans.
🧮 How Much Should You Save?
- Basic Starter Goal: NPR 10,000–25,000
- Stable Goal: 3 months’ expenses = (Monthly Expenses × 3)
Example: If your monthly expense is NPR 20,000 → You need NPR 60,000 minimum in your emergency fund.
🪙 Step-by-Step: How to Build It on a Low Income
1. Track Your Monthly Expenses
Use a notebook or free apps like Hamro Patro or Wallet to track every rupee. Know where your money is going — chai, snacks, recharge, etc.
2. Set a Monthly Saving Target
Even NPR 500 per month can build an emergency fund in a year. Automate if possible — set a reminder or auto-transfer to a saving wallet or bank account.
3. Use Digital Wallets with Saving Features
- eSewa SmartSave – Save small amounts daily.
- Khalti SmartBank – Lock-in savings for emergencies.
4. Cut Down Non-Essential Spending
Reduce:
- Frequent snacks or momo expenses (Rs. 100/day = Rs. 3000/month)
- Mobile data waste (Use Wi-Fi at home)
- Random online purchases
5. Save Any Extra Income
Festival bonuses, Dashain Tika money, freelance earnings — direct them to your emergency fund instead of spending.
6. Sell Unused Items
Sell old phones, clothes, or furniture via Facebook Marketplace or HamroBazar. Put the money into your emergency fund.
📊 Sample Emergency Budget Plan (for Rs. 25,000 income)
| Category | Amount (NPR) |
|---|---|
| Rent | 8,000 |
| Food | 7,000 |
| Transportation | 2,000 |
| Utilities (Electricity, Wi-Fi) | 1,500 |
| Emergency Fund | 2,000 |
| Personal/Other | 4,500 |
You can adjust these amounts based on your city and family size.
✅ Best Places to Store Your Emergency Fund in Nepal
- Fixed deposit (FD) account with early withdrawal option
- Savings bank account separate from your spending account
- Digital wallets (eSewa, Khalti, IME Pay) with savings vaults
❌ Where NOT to Keep It
- Under your mattress (risk of theft, inflation)
- Main bank account (you may spend it)
- Investments like stocks or crypto (not liquid or safe)
🙋♂️ Common Questions in Nepal
Q1: I earn only Rs. 15,000/month. Can I still save?
Yes. Start with just Rs. 200 per month. The habit matters more than the amount.
Q2: Can I use my emergency fund for school fees?
Only if it’s an emergency (like urgent admission). Try not to use it for planned expenses.
Q3: What if I already have loans?
Still save! Even Rs. 500/month into your fund gives you power to avoid future debt.
📣 Final Tips
- Name your fund: “Family Emergency Fund” or “Hospital Backup” — it helps you take it seriously.
- Track your progress monthly. Celebrate small wins!
- Keep it separate from your daily-use accounts.
📌 Conclusion
Building an emergency fund on a low income in Nepal is tough — but not impossible. With discipline, even a small amount saved regularly can protect your future and give you peace of mind.
Start today — even with NPR 100!
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