BUSINESS ADMINISTRATION
BUSINESS MATHEMATICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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You don’t need an emergency fund because life never throws you any curve balls.
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at least 1 month of your monthly income
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at least 3 months of your monthly income
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2 years of your net income
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Detailed explanation-1: -People in stable jobs are recommended to put away 3-6 months’ salary into their emergency fund, whereas people with lower job security are recommended to save 6-12 months’ salary. A stable income ensures a consistent and bigger emergency fund.
Detailed explanation-2: -The rule of thumb is that individuals should have enough in an emergency fund to cover three to six months of living expenses. Add up essential living expenses for one month and multiply that amount by either three or six (this will depend on how much you’re most comfortable having in case of emergency).
Detailed explanation-3: -Most experts believe you should have enough money in your emergency fund to cover at least 3 to 6 months’ worth of living expenses. Start by estimating your costs for critical expenses, such as: Housing. Food.
Detailed explanation-4: -How much should you save? While the size of your emergency fund will vary depending on your lifestyle, monthly costs, income, and dependents, the rule of thumb is to put away at least three to six months’ worth of expenses.