Quitting my Rs 1.2L per month IT job to start a business: How much emergency fund do I need?

True entrepreneurs do not take wild risks but instead take highly calculated asymmetric bets where the downside is strictly capped and the upside is limitless. Quitting your job right now and burning through your Rs 10L savings is an unnecessary and dangerous gamble.

You should start building your business while still working your full-time job to protect your primary cash flow. You can wake up early and work from 6 AM to 9 AM on your startup before heading to your day job. After you finish your corporate work you can spend from 6 PM to midnight building your business.

It will be exhausting but this approach completely eliminates the financial panic of watching your bank balance drain to zero. You should only hand in your resignation when your side business is consistently generating enough cash flow to fully replace your Rs 1.2 Lakhs salary. Even at that point you must understand the worst-case scenarios and ensure you have a solid safety net in place.

By keeping your job while you build the prototype and get your first paying clients you are capping your downside risk entirely. If the startup fails you still have your salary and your Rs 10 Lakhs savings intact. If it succeeds you transition smoothly into limitless upside without ever putting your family's financial security at risk.

Disclaimer: All information shared above are strictly for educational and informational purposes only. It should not be construed as financial or investment advice.