Jorge's gross income is $80,000 per year. He has a long-term care disability policy. How much does he need in his emergency fund to cover short-term expenses?

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Quizplus · Accepted Answer

An emergency fund typically covers 3 to 6 months of living expenses. Assuming Jorge needs to cover 3 months, $80,000 divided by 12 months is approximately $6,667 per month. For 3 months, he would need about $20,000. However, the closest option provided is $26,000, which would cover slightly more than 3 months.

Jorge's Gross Income Is $80,000 Per Year