Question

Our 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 $1,100, and you plan to put 10% toward your emergency fund each month. How long will it take you to reach your goal?

Answer 1

You would need 3 x $700 = $2100. You would have $110 a month to put in your emergency fund. $2100/$110=19.09 so you would need 20 months to have $2100 saved.