Question

Your housing and fixed expenses are $702.38/month.

You want to have a 4-month emergency fund and save it over a 9-month period of time. How much do you need to save per month?


/month

Answer 1

$ 312.17

Explanation:

We have to want to save an emergency fund based on household expenses, the first thing is to calculate how much to save those 4 months would be:

702.38 * 4 = 2809.52

In other words, you will need $ 2809.52 to save for 4 months

Now we must divide by 9 because that is the number of months it will take to save, therefore:

2809.52 / 9 = 312.17

That is to say, $ 312.17 per month, for 9 months to save 4 months of expenses.