Question

Your goal is to have an emergency fund equal to 3 months living expenses. Your living expenses are $700 a month. Your take-home pay per month is $1100, and you plan to put 10% towards your emergency fund each month. How long will it take you to reach your goal?

Answer 1

19 months

Explanation:

To reach your goal of 3 months of living expenses, you need to save $2100 ($700/month * 3 months).

You plan to save 10% of your take-home pay each month, which is $110 ($1100/month * 10%).

Therefore, it will take you 19 months to reach your goal of having an emergency fund equal to 3 months of living expenses: $2100 / $110/month = 19 months

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