Question

You are paid $13.70/hr. You work 40 hr/wk and your deductions are FICA (7.65%), federal tax withholding (11.55%), and state tax withholding (8.35%). Your housing and fixed expenses are 30% of your realized income per month and you want to save 6 months’ worth in an emergency fund. How much do you need to save?

Answer 1

You need to save $2,858.59.

Trust me :)

Answer 2

To find how much you need to save for six months, you could calculate your yearly income-steps 1 and 2. After that find the total percentage of that yearly income you're going to pay for taxes and expenses-step three, take that percent times do yearly income- step 4, and then cut that in half to find out the amount for half a year, six months-step 5.