Question

) Calculating the Amount for an Emergency Fund. Beth and Bob Martin have total take-home pay of $4,200 a month. Their monthly expenses total $3,100. Calculate the minimum amount this couple needs to establish an emergency fund. How did you calculate this amount?

Answer 1

Answer:

$9,300

Explanation:

A good rule of thumb is having 3 months of expenses saved up in case of emergency. 3 * 3,100 in monthly expenses = $9,300 which should be their minimum savings goal for an emergency fund.