Many financial experts advise that you set up a contingency fund equal to about ________ of your earnings and keep these funds in highly liquid accounts.
A) two months
B) six months
C) one year
D) three years

Question

Quizplus · Accepted Answer

Financial experts generally advise setting up a contingency fund equal to about six months of your earnings. This is to ensure that you have enough funds to cover unexpected expenses or emergencies without having to dip into your long-term savings or investments. Keeping these funds in highly liquid accounts ensures that they are easily accessible when needed. Options for liquid accounts include savings accounts, money market accounts, and short-term certificates of deposit.

Many Financial Experts Advise That You Set Up a Contingency