Question

You're working on building your emergency fund. Your total living expenses are
\[\$2{,}200\] per month. You're hoping to save enough for six months of expenses, and you're currently saving
\[\$1{,}100\] each month.
How long will it take you to fill your emergency fund if you continue saving at the same rate?
months

Answer 1

To calculate the number of months it will take to fill the emergency fund, divide the total amount needed by the amount saved each month.
The total amount needed is 6 times the monthly living expenses: \(\$2,200 \times 6 = \$13,200\).
Dividing the total amount needed (\$13,200) by the amount saved each month (\$1,100), we get:
\(\dfrac{13,200}{1,100} = 12\) months.
Therefore, it will take you 12 months to fill your emergency fund if you continue saving at the same rate.