Your realized income from your primary job is $3,076.45/month. Your fixed expenses are 36% of your realized income. How much must you save for an emergency fund of 6 months?
First, calculate your fixed expenses:
Fixed expenses = $3,076.45/month x 36% = $1,108.72/month
Next, calculate your monthly savings needed for the emergency fund:
Monthly savings = $3,076.45/month - $1,108.72/month = $1,967.73/month
Finally, calculate the total amount needed for a 6-month emergency fund:
Emergency fund = $1,967.73/month x 6 months = $11,806.38
Therefore, you must save $11,806.38 for a 6-month emergency fund.