Emergency Fund
They are the expenses that may occur unexpectedly. Aim to save at least three to six month's worth of living expenses in an easily accessible account.
Emergency Fund Required = Monthly Expenses * Number of Months
=> $2,100 * 3 = $6,300
If we save 20% or $180/month of our savings amount for our emergency fund, in 2 years & 11 months we will have $6300 in our account.
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