Mr. Spark spends RM2 500 for household expenses every month. How much is the minimum emergency fund needed by him based on Bank Negara Malaysia suggestion?(Hint:Emergency fund is the amount Mr. Spark should have to spend on household if he suddenly doesnt have any income)

FINANCIAL MANAGEMENT

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

Mr. Spark spends RM2 500 for household expenses every month. How much is the minimum emergency fund needed by him based on Bank Negara Malaysia suggestion?(Hint:Emergency fund is the amount Mr. Spark should have to spend on household if he suddenly doesn’t have any income)

A	RM15 000
B	RM10 000
C	RM7 500
D	RM12 000

Explanation:

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: -The rule of thumb is that individuals should have enough in an emergency fund to cover three to six months of living expenses. Add up essential living expenses for one month and multiply that amount by either three or six (this will depend on how much you’re most comfortable having in case of emergency).

Detailed explanation-3: -While financial experts generally suggest setting aside three to six months’ worth of your living expenses in an emergency fund, the global pandemic that has put tens of millions of Americans out of work is shifting some to tailor this advice.

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BUISENESS MANAGEMENT

FINANCIAL MANAGEMENT