Question

Using the information from question #14, if you only want to put 50% of your discretionary monies toward the emergency fund each month, how many months will it take to fully fund it, excluding interest accrual? (Note: Round up to the next whole month.)

Answer 1

Given that the total amount needed for the emergency fund is $3,000 and you want to put 50% of your discretionary monies towards it every month:

Monthly contribution = 50% of discretionary monies = 0.5 * $500 = $250

Number of months to fully fund the emergency fund = $3,000 / $250 = 12

It will take 12 months to fully fund the emergency fund, excluding interest accrual.