alleryStart learning →How much do some careful savers keep aside for emergencies like sudden unemployment?
AOne week of income
BA single month's rent
CUp to six months of income
DTen years of expenses
Answer & Solution
Correct answer: C. Up to six months of income
1. After clearing high-interest debt, smart investors fund an emergency cushion first.
2. Some make sure they have up to six months of their income in savings.
3. The cushion must absolutely be there when it is needed, so it stays in savings, not securities.
_Source: "Saving and Investing: A Roadmap to Your Financial Security" (US SEC, public domain), section Investing_
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