Mia's gross income is $50,000 per year. She has a long-term care disability policy. How much does she need in her emergency fund to cover short-term expenses?

Name: Mia's gross income is $50,000 per year. She has a long-term care disability policy. How much does she need in her emergency fund to cover short-term expenses?
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Question

Quizplus · Accepted Answer

Emergency funds should cover 3-6 months of expenses. Mia's monthly expenses are $50,000/12 = $4,166.67. So, she needs $4,166.67 x 3 = $12,500 in her emergency fund.

Mia's Gross Income Is $50,000 Per Year