ECONOMICS
SAVING AND INVESTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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emergencies
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retirement
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dream vacation
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both emergencies and retirement
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Detailed explanation-1: -How much should you save? 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: -When it comes to retirement planning, it’s never too early to start saving. The more you invest and the earlier you start means your retirement savings will have that much more time and potential to grow. By investing early and staying invested, you may be able to take advantage of compound earnings.
Detailed explanation-3: -To determine how much you need to save every month in your Emergency Fund, you first need to calculate the ideal size of the fund. It is generally recommended that the size of an Emergency Fund is substantial enough to cover monthly expenses for a period of 6 to 9 months. As your monthly expenses are Rs.
Detailed explanation-4: -Focus on starting today. Contribute to your 401(k) account. Meet your employer’s match. Open an IRA. Take advantage of catch-up contributions if you’re age 50 or older. Automate your savings. Rein in spending. Set a goal. More items