ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The ideal amount to save in an emergency fund is 3-6 months’ worth of expenses. However, this is not fixed; it also depends on a number of other factors, such as these: The stability of your income.

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: -To determine how much you need to save every month in your Emergency Fund, you first need to calculate the ideal size of the fund. It is generally recommended that the size of an Emergency Fund is substantial enough to cover monthly expenses for a period of 6 to 9 months. As your monthly expenses are Rs.

Detailed explanation-5: -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.