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How much money should Lisa and Joe have in their emergency fund if they have a $3000 credit card bill and a mortgage?

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Final answer:

To determine the amount for Lisa and Joe's emergency fund, consider their $3000 credit card bill and their mortgage. An emergency fund should typically cover 3-6 months of expenses, including debt payments.

Step-by-step explanation:

To determine how much money Lisa and Joe should have in their emergency fund, we need to consider their $3000 credit card bill and their mortgage. An emergency fund is typically recommended to cover 3-6 months of expenses, including debt payments such as credit cards and mortgages.

For example, if Lisa and Joe's monthly expenses (including debt payments) are $2000, they would need an emergency fund of $6000-$12000. This amount would cover their $3000 credit card bill and any potential mortgage payments for 3-6 months. It's important to note that the exact amount needed for an emergency fund can vary depending on individual circumstances, such as income stability and other financial obligations.

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User Willhess
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