You are working on building your emergency fund. Your total living expenses are
$
1
,
800
$1,800dollar sign, 1, comma, 800 per month and you're hoping to save enough for three months' worth of expenses. You're currently saving
$
600
$600dollar sign, 600 each month.
How long will it take you to fully fund your emergency fund?
To fully fund your emergency fund, you need to save for three months' worth of expenses.
Total living expenses per month: $1,800
Amount saved each month: $600
Therefore, to save for three months' worth of expenses, you would need to save:
3 months x $1,800 = $5,400
Since you are saving $600 per month, the time it will take to fully fund your emergency fund is:
$5,400 ÷ $600 = 9 months
It will take you 9 months to fully fund your emergency fund.
To find out how long it will take you to fully fund your emergency fund, you can divide the total amount you need to save by the amount you are saving each month.
Total living expenses for 3 months = 3 x $1,800 = $5,400.
So, you need to save $5,400 to fully fund your emergency fund.
Amount you are saving each month = $600.
To calculate the number of months it will take to save $5,400, divide $5,400 by $600.
$5,400 / $600 = 9.
Therefore, it will take you approximately 9 months to fully fund your emergency fund.
To determine how long it will take to fully fund your emergency fund, you need to divide the target amount by your monthly savings.
In this case, your target amount is three months' worth of living expenses, which is $1,800 * 3 = $5,400.
You are currently saving $600 per month, so the calculation to determine how long it will take is: $5,400 / $600 = 9 months.
Therefore, it will take you 9 months to fully fund your emergency fund if you continue saving at the current rate.