saving spending and credit
Savings = Financial Security
Having savings is vital to your financial stability. It’s important to build an emergency savings fund for use when unexpected expenses arise. How much emergency savings do experts recommend you have on hand to cover unanticipated expenses?
- An amount equivalent to one paycheck
- Three-to-six months of income
- At least one year of income
“B” is correct. Emergency savings helps you avoid maxing out your credit card to pay for unexpected expenses, like when the car breaks down. It also makes it easier to weather economic uncertainties such as job loss or a health setback.