ECONOMICS
MONEY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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True
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False
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Either A or B
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None of the above
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Detailed explanation-1: -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.
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: -It means that you will be more prepared for a sudden expense and that you can handle small financial hits more smoothly. Unemployment, illness, and family emergencies can come up with no warning, and having emergency savings can help ease those stressful situations.
Detailed explanation-4: -As a general rule of thumb, many financial experts recommend setting aside 3-6 months’ worth of living expenses. So if you generally spend $2, 000 per month on rent, utilities, food, gas, healthcare, and other necessities, you should try to save between $6, 000 and $12, 000.