ECONOMICS
BUDGETING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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“To save money for college for the next five years”
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“To pay off credit card bills in the 12 months.”
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“To invest in an international mutual fund for retirement.”
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“To establish an emergency fund of $4, 000 in 18 months.”
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Detailed explanation-1: -An emergency fund is a cash reserve that’s specifically set aside for unplanned expenses or financial emergencies. Some common examples include car repairs, home repairs, medical bills, or a loss of income.
Detailed explanation-2: -Liquid assets like money market accounts, high-yield savings accounts, and CDs are among the ways you can invest your emergency fund money so that it can grow and remain accessible.
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.
Detailed explanation-4: -Build an emergency fund that will cover three to nine months of expenses. Consider various insurance options that help protect against financial emergencies. Invest in savings products designed for major expenses that are not unexpected. Get your financial “house” in order. More items