ECONOMICS
MONEY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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vacations/emergencies
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small purchases/tires
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unexpected/emergency
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liquid income/dental bills
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Detailed explanation-1: -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-2: -Why do I need an emergency fund? Emergency funds create a financial buffer that can keep you afloat in a time of need without having to rely on credit cards or high-interest loans. It can be especially important to have an emergency fund if you have debt, because it can help you avoid borrowing more.
Detailed explanation-3: -Unexpected expenses are those expenses you did not see coming. An example would be going for your inspection of your car and not passing because there is something that must be repaired. This is something that can be included in your budget as part of your savings plan.
Detailed explanation-4: -Water (one gallon per person per day for several days, for drinking and sanitation) Food (at least a several-day supply of non-perishable food) Battery-powered or hand crank radio and a NOAA Weather Radio with tone alert. Flashlight. First aid kit. Extra batteries. Whistle (to signal for help) More items •10-May-2022