If Melody's monthly income is $3,250, what is the minimum she should have in her emergency fund?
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@jim_thompson5910 can u tell me what i need to do to get my answer?
depends on how much she needs if she lost her job and how long she is without a job
for instance, if she needs money to cover 1 month of being unemployed, then she should have 3250 dollars. If she needs 2 months of wages (to cover 2 months of being unemployed), then she'll need 2*3250 = 6500 dollars
does it say what a good rule of thumb is? like in terms of how much buffer room there is