Question

How much money should be set aside in an emergency fund?

Question 1 options:

1 month


12 months


6 months


5 years

Answer 1

The commonly recommended amount to set aside in an emergency fund is typically **3 to 6 months** of living expenses. However, some financial advisors suggest setting aside enough to cover up to **12 months** of expenses, especially if you have irregular income or work in a volatile job market.

Given the options you provided, the best choice would be **6 months**, as it is a widely accepted guideline for emergency savings.