Question

If Melody's monthly income is $3,250, what is the minimum she should have in her emergency fund?
A. $3,250.00
B. $6,500.00
C. $9,750.00
D. $13,000.00

Answer 1

@jim_thompson5910 can u tell me what i need to do to get my answer?

Answer 2

depends on how much she needs if she lost her job and how long she is without a job

for instance, if she needs money to cover 1 month of being unemployed, then she should have 3250 dollars. If she needs 2 months of wages (to cover 2 months of being unemployed), then she'll need 2*3250 = 6500 dollars

etc etc

Answer 3

does it say what a good rule of thumb is? like in terms of how much buffer room there is

Answer 4

so im thinking my answer is 6500. and no it doesnt say what rule of thumb.

Answer 5

would you chose 6500?

Answer 6

2 to 3 months is usually a good rule of thumb in my book since that gives a person plenty of time to find another job

Answer 7

this is assuming the job market is decent

Answer 8

so should i go with 6500?

Answer 9

cause it asks us what is the "minimum" she should have

Answer 10

that's probably a good rule of thumb to go by, 2 months should be enough