Question

You have housing and fixed expenses of $813.52/month. You want to have a 6-month emergency fund and you want to have it funded in 18 months. How much must you save per month?

Answer 1

Since the expenses are fixed at $813.52/month, a 6-month emergency fund will be 6 times this value.

$813.52\times6=4881.12$

The fund must have $4881.12.

Since this will be funded in 18 months, we just need to divide the total amount of the fund by 18 to find how much must be saved per month.

$\frac{4881.12}{18}=271.173333333\ldots\approx271.17$

$271.17 must be saved monthly.