A person whose income is dependent on commissions generally needs more readily available emergency fund than a salaried employee.

Question

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A person who relies on commissions for income does not have a fixed income every month. Therefore, they may have difficulty making ends meet during lean periods. A readily available emergency fund can help them cover expenses during such times. On the other hand, a salaried employee has a fixed income, which is not as affected by market conditions. As a result, they may have a lower need for an emergency fund.

A Person Whose Income Is Dependent on Commissions Generally Needs