BANKING AFFAIRS

Detailed explanation-1: -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-2: -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.

Detailed explanation-3: -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-4: -It means that you will be more prepared for a sudden expense and that you can handle small financial hits more smoothly. Unemployment, illness, and family emergencies can come up with no warning, and having emergency savings can help ease those stressful situations.