Appropriate Emergency Fund
James and Lisa are married, both age 40, with two children. They have the following monthly expenses:
- Mortgage: $2,500
- Utilities: $400
- Groceries: $1,000
- Car loans: $600
- Insurance premiums: $500
- Discretionary spending: $900
They both have stable jobs and contribute equally to a combined gross income of $190,000/year. According to CFP Board recommendations, how much should James and Lisa keep in their emergency fund?
- $6,000
- $15,000
- $30,000
- $50,000
