Question

Jay's net earnings are $4000 per month. Jay's monthly expenses are $3000 per month, with $2000 of that being rent. According to common advice, how much should Jay have in a 5-month emergency fund?

Answer 1

In Five month Jay should have $15,000  in his account has emergency fund

Given Data

Earnings per month = $4000

Monthly Expenses = $3000

Monthly Rent = $2000 part of monthly expenses

After deducting monthly expenses from Monthly earning we have

4000-3000 = $1000

Determining the 5-months Emergency Funds

Since we have a monthly expenses of $3000 a five month emergency fund will be

= 3000*5

= $15,000

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