Question

Joaquin garcia earns $46,000 a year. his monthly expenses total $1,900. what is the minimum amount of money that he should set aside in an emergency fund?

Answer 1

Joaquin Garcia should set aside a minimum of $5,700 for a 3 month emergency fund and $11,400 for a 6 month emergency fund, based on monthly expenses of $1,900.

Step-by-step explanation:

The question asks what is the minimum amount that Joaquin Garcia should set aside in an emergency fund. Financial advisors often recommend that an emergency fund should cover a minimum of 3 to 6 months of living expenses. Let's calculate the emergency fund based on both 3 months and 6 months.

Joaquin's monthly expenses are $1,900. For 3 months, his emergency fund should be at least:

$1,900 × 3 = $5,700

For 6 months, it should be:

$1,900 × 6 = $11,400

To solve the mathematical problem completely, we consider both scenarios that financial experts typically advise. Therefore, the minimum amount for an emergency fund should be $5,700, while a more secure amount would be $11,400.