Which of the following practices helps an individual survive in a financial crisis?
A) Spending more than his or her earnings to maintain a good lifestyle
B) Investing small amounts regularly to achieve long-term financial goals
C) Establishing an emergency fund with 6 months' worth of income
D) Developing financial plans only after reaching the highest tax brackets
E) Hiring a noncertified financial planner

Question

Quizplus · Accepted Answer

By establishing an emergency fund with 6 months' worth of income, an individual can have a buffer in case of financial crisis, such as job loss or unexpected expenses. Option A is not sustainable and can lead to further financial problems. Option B is a good practice, but may not be effective in the short term financial crisis. Option D is not advisable as financial planning should start early regardless of tax brackets. Option E is not a good choice as noncertified financial planner may not have the necessary expertise and credentials to provide sound financial strategy advice.

Which of the Following Practices Helps an Individual Survive in a Financial