Question 2
“Three months’ expenses” is a simple target for an emergency fund, but the ideal size varies with job stability, dependents, and access to credit. The fund’s purpose is resilience, not to cover predictable recurring shortfalls.
What is true about emergency funds?
Did You Also Know...
By Wise Wallet
Some loan products can negatively amortize, meaning the outstanding balance grows if payments don’t cover the accruing interest.
