Which of the following statements best gives the reasons that a data usage bill for a smart phone is an?

A data usage bill for a smartphone is an essential expense as it is an obligation to pay, but the spender has some control over its amount. Further Explanation: Data usage bill: A data usage bill shows how much a person has spent during a particular period.

Which of these is an example of using financial reserves for a occasional expense?

An occasional expense is one that does not happen every month. Winter maintenance would count as occasional. Saving a little money each month to make sure you have enough to perform winter maintenance is using financial reserves for occasional expenses.

Which of the following would you list as an essential fixed expense a electricity bill b telephone usage Bill C Car Repair D rent Please select the best answer from the choices provided?

The best answer would be rent.

Which of the following statements best gives the reasons that Ben’s rent payment is an essential fixed expense?

Answer Expert Verified. The statement that best gives the reasons that Ben’s rent payment is an essential (fixed) expense is D. it is by contract the same amount every month. So, this is his rent, the amount of money that he is legally bound to pay every month in order to keep on living in that location.

Which of the following would be a fixed expense on your budget?

Typical fixed expenses include car payments, mortgage or rent payments, insurance premiums and real estate taxes. Typically, these expenses can’t be easily changed. On the plus side, they’re easy to budget for because they generally stay the same and are paid on a regular basis.

What is an emergency fund most similar to?

“An emergency fund is most similar to…” a. an insurance policy, because it might not cover all of your expenses.

What are examples of emergency expenses?

Emergency Fund Examples

Car Repairs. Car repairs are one of the most common emergency expenses that there are.
Home Repairs. Owning your own home is awesome.
Medical Emergencies. As we’ve learned from the recent epidemic, things can happen fast and unexpectedly.
Job Loss.
Unexpected Travel.
Moving Expenses.
Family Emergency.

What types of emergency funds should I have?

Most experts believe you should have enough money in your emergency fund to cover at least 3 to 6 months’ worth of living expenses….Start by estimating your costs for critical expenses, such as:

Housing.
Food.
Health care (including insurance).
Utilities.
Transportation.
Personal expenses.
Debt.

What would qualify as a good reason to use your emergency fund?

One common reason for an emergency fund is to cover the cost of an expensive car repair or accident. Even if your car is insured, you may still have to pay the deductible in the event of an accident, and common car repairs like new brakes, new spark plugs or a new timing belt could set you back hundreds of dollars.

How much money should you have in your emergency fund?

Key Takeaways. Most experts recommend keeping three to six months’ worth of expenses in an emergency fund, but some situations warrant more. Some experts recommend a smaller emergency fund while you’re paying off debt. If your job is secure and you don’t have a lot of expenses, you may be able to save less.

What are 3 emergency costs?

9 Reasons You Need an Emergency Fund

Job loss. This is usually listed as the primary reason you need an emergency fund—and for good reason.
Major health expense.
Major dental expense.
Emergency pet care.
Car repairs.
Home repairs.
Bigger-than-expected tax bill.
Unanticipated travel.

How much should I put in my emergency fund per month?

How much should you save? While the size of your emergency fund will vary depending on your lifestyle, monthly costs, income, and dependents, the rule of thumb is to put away at least three to six months’ worth of expenses.

What is a good amount of money to have in savings?

Most financial experts end up suggesting you need a cash stash equal to six months of expenses: If you need $5,000 to survive every month, save $30,000. Personal finance guru Suze Orman advises an eight-month emergency fund because that’s about how long it takes the average person to find a job.

Is 100 000 a lot of savings?

Having a 100k in savings or investments might mean quite a bit to you. It could be a number of years expenses depending on your lifestyle costs. This could mean you could take one or more years off work or work part-time because you don’t need the money. You could do that around the world trip in the style you like.

How can I save 100k in 3 years?

I saved over $100,000 in just 3 years by the time I was 27—here are my top money-saving tips

Invest in your 401(k)
Keep your expenses very, very low.
Save 40% to 50% of your earnings.
Start a side hustle.
Don’t get caught up in comparison.

What should I do with 100k savings?

Try your hand in the stock market. If you have $100,000 to invest, stocks should be at the top of your list.
Capitalize on the hot real estate market.
Store same money away in retirement accounts.
Reach out to the community with Peer-to-Peer (P2P) lending.
Get help with your investments.

How much savings should I have at 50?

The quick answer to how much you should have saved by age 50 = 10X your annual expenses. In other words, if you spend $50,000 a year, you should have about $500,000 in savings. Your ultimate savings by 50 goal is to achieve a 20X expense coverage ratio in order to retire comfortably.

How can I build wealth in my 50s?

3 Steps to Building Wealth In Your 50s

Leverage All of Your Savings Options. While a 401(k) (or another employer-sponsored plan) is a good first stop for retirement savings, it’s not the only way to build your nest egg.
Be Strategic About Paying Down Debt.
Manage Risk Carefully.

What is the average 401k balance for a 55 year old?

around $500K

How much money should I have saved at 55?

Experts say to have at least seven times your salary saved at age 55. That means if you make $55,000 a year, you should have at least $385,000 saved for retirement. Keep in mind that life is unpredictable–economic factors, medical care, how long you live will also impact your retirement expenses.