ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -You’ll want to max out at about half a year’s worth of expenses. The long answer: The right amount for you depends on your financial circumstances, but a good rule of thumb is to have enough to cover three to six months’ worth of living expenses.

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: -What is an emergency fund? An emergency fund is a separate savings or bank account used to cover or offset the expense of an unforeseen situation. It shouldn’t be considered a nest egg or calculated as part of a long-term savings plan for college tuition, a new car, or a vacation.

Detailed explanation-4: -An emergency fund, also known as contingency fund, is a personal budget set aside as a financial safety net for future mishaps or unexpected expenses.

Detailed explanation-5: -Housing. Food. Health care (including insurance). Utilities. Transportation. Personal expenses. Debt.