Calculating the Amount for an Emergency Fund. Beth and Bob Martin have a total take-home pay of $3,600 a month. Their monthly expenses total $3,100. Calculate the amount the couple needs to establish an emergency fund (assume a 3 month emergency fund). How did you calculate this amount?
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Financial planners typically recommend creating an emergency fund equal to three to six months of living expenses. So Beth and Bob will need $3100(living expenses) times three(min)= $9300 and $3100 times six= $18, 600.
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