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

Answer 1

An emergency fund should ideally cover three to six months’ expenses. This range provides a buffer to handle unexpected financial situations, such as job loss or medical emergencies, without relying on credit. Therefore, the most commonly recommended answer is six months’ expenses for a more robust safety net.