Which Of the Following Expenses Would Be A Good Reason To Spend Money From An Emergency Fund?

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Which of the following expenses would be a good reason to spend money from an emergency fund? This is what you are looking for. Now your seeking will end here, we will give your answer and also we will go through some frequently asked questions related to unexpected expenses.

Which of the following expenses would be a good reason to spend money from an emergency fund?

A. Buy new track shoes because they’re in style.

B. Repair your laptop that you use for homework.

C. Upgrade your phone to the latest model.

D. Purchase concert tickets to see your favorite artist.

The correct answer is B. Repair your laptop that you use for homework.

B. Repair your laptop that you use for homework. good reason to spend money from an emergency fund? because it is an unexpected and required expense that will affect your schooling. An emergency fund is a savings account set up for unexpected and urgent needs such as auto repairs, medical bills, or job loss. You should only utilize your emergency fund for necessary expenses that you cannot postpone or avoid, not for non-essential or discretionary items that you can prepare for or live without.

The other options are not good reasons to spend money from an emergency fund because they are not unexpected or necessary expenses.

A) Buy new track shoes because they’re in style.

This is not a good justification to spend money from an emergency reserve because the expense is not urgent or necessary. When you have enough money saved up or when your old track shoes wear out, you can get new ones. Purchasing new track shoes simply because they are fashionable is a matter of personal pleasure, not necessity.

C) Upgrade your phone to the latest model.

This is not a valid justification to spend money from an emergency reserve because the expense was not unexpected or essential. You can upgrade your phone when you have enough money or when your current phone breaks. Upgrading to the latest model of your phone is a question of convenience, not necessity.

D) Purchase concert tickets to see your favorite artist.

This is not a good justification to spend money from an emergency reserve because the expense is not urgent or necessary. Concert tickets can be purchased when you have enough money saved for them or when they are on sale. Buying concert tickets to see your favorite musician is a leisure activity, not a necessity.

Read Similar Question: In Addition To Needs, What Should You Plan For First When Creating A Budget?

FAQs related to which of the following expenses would be a good reason to spend money from an emergency fund?

Which of the following is an unexpected expense?

Unexpected expenses are ones that you did not anticipate. As an example, imagine going for your car’s inspection and failing because something has to be repaired. This is something that you can budget for as part of your savings plan.

Which of the following should be the purpose of an emergency fund?

An emergency fund is a designated savings account set up for the proverbial rainy day, to cover unexpected bills that may arise over time. This money can be used to pay for anything from unexpected car repairs to unexpected medical expenditures.

What are the four kinds of expenses?

In general, monthly expenses can be divided into four categories:
1. constant variable
2. intermittent
3. discretionary.
4. Fixed expenses are those that stay constant month after month. Fixed expenses include mortgage payments and auto insurance fees.

Conclusion:

An emergency fund is a savings account set up for unexpected and urgent needs such as auto repairs, medical bills, or job loss. You should only utilize your emergency fund for necessary expenses that you cannot postpone or avoid, not for non-essential or discretionary items that you can prepare for or live without. Repairing your laptop that you use for homework, for example, is a good excuse to spend money from an emergency fund, however, buying new track shoes because they’re trendy is not.

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