How much should an emergency fund cover?(1 point)

Question

Responses

one month’s expenses
one month’s expenses

three months’ expenses
three months’ expenses

six months’ expenses
six months’ expenses

twelve months’ expenses
twelve months’ expenses

Answer 1

It is generally recommended to have an emergency fund that covers at least three to six months' worth of expenses. This can provide a financial cushion in case of unexpected events such as job loss, medical emergencies, or major home repairs. Ultimately, the amount needed for an emergency fund will vary depending on individual circumstances and financial goals.