Question
How much should an emergency fund cover
A. One month's expenses
B. 2 months expenses
C. 6 months expenses
D. 12 months expenses
A. One month's expenses
B. 2 months expenses
C. 6 months expenses
D. 12 months expenses
Answers
GPT-4o mini
C. 6 months expenses
An emergency fund is generally recommended to cover 3 to 6 months' worth of living expenses. This amount can help provide a financial cushion in case of unexpected situations like job loss, medical emergencies, or urgent repairs. Some individuals may choose to save more, up to 12 months, depending on their personal circumstances and comfort level. However, the most common recommendation is around 3 to 6 months.
An emergency fund is generally recommended to cover 3 to 6 months' worth of living expenses. This amount can help provide a financial cushion in case of unexpected situations like job loss, medical emergencies, or urgent repairs. Some individuals may choose to save more, up to 12 months, depending on their personal circumstances and comfort level. However, the most common recommendation is around 3 to 6 months.