ECONOMICS
MONEY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Rent
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Car repairs
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Groceries
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Car insurance
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Detailed explanation-1: -Ans: An emergency fund is necessary as it can help you in unexpected disasters and even serve as your own safety income during financial stress time. We recommend saving a minimum of 50-80k for emergencies.
Detailed explanation-2: -An emergency fund is a stash of money set aside to cover the financial surprises life throws your way. These unexpected events can be stressful and costly.
Detailed explanation-3: -“If we are unable to work, bills don’t magically disappear and so it may be necessary to tap into your emergency savings to pay things such as your mortgage, car payment, utility bill, etc.”
Detailed explanation-4: -Housing. Food. Health care (including insurance). Utilities. Transportation. Personal expenses. Debt.
Detailed explanation-5: -Set several smaller savings goals, rather than one large one. Set yourself up for success from the start. Start with small, regular contributions. Automate your savings. Don’t increase monthly spending or open new credit cards. Don’t over-save.