ECONOMICS
BUDGETING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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estimated fund
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emergency fund
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saving fund
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variable fund
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Detailed explanation-1: -An emergency fund is essentially money that’s been set aside to cover life’s unexpected events. The money will allow you to live for a few months should you happen to lose your job or pay for something unexpected that comes up without going into debt. Think of it as an insurance policy.
Detailed explanation-2: -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-3: -Step 1: Find ways to stretch your budget. With certain expenses, you may be able to request a payment plan. Step 2: Consider new borrowing options if necessary. Step 3: Be cautious about liquidating investments. Step 4: Get your emergency savings ready for next time.
Detailed explanation-4: -Determine the fund amount you need. Ensuring a disciplined cash management strategy can help you determine the amount of funds you can invest. Choose the right investment options. Automate your investments. Invest in Insurance. Use only in emergencies.
Detailed explanation-5: -Housing. Food. Health care (including insurance). Utilities. Transportation. Personal expenses. Debt.