Round any decimals to the nearest penny.

Question

Your realized income is $2,085.44, and your fixed expenses are 30%. You want to save 6 months worth in an emergency fund. How much do you need to save?

Answer 1

First, calculate your total fixed expenses by multiplying your realized income by 30%:
$2,085.44 x 0.30 = $625.63

Next, calculate your monthly fixed expenses by dividing your total fixed expenses by 6 (for 6 months):
$625.63 / 6 = $104.27

Therefore, you need to save approximately $104.27 each month to build a 6-month emergency fund.