Based on your projected salary, estimate and subtract 20 percent for taxes and benefits and another 10 percent for retirement. From the remainder, estimate and subtract the amount you plan to save annually for short-, intermediate-, and long-term goals. What you have left represents your income available for meeting all expenses. Now, estimate the emergency fund you need to cover 3 to 6 months' expenses. Realistically, how long will it take you to save the needed amount?
This question was answered on: Jul 11, 2017
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