Is it an emergency? Decide before you spend: test your skills
Decide in advance what the fund is for — it is the simplest way to stop it quietly becoming spending money. Answer each question to see the explanation; your score appears at the end.
This test checks that you can
- Apply the unexpected, necessary, urgent test
- Handle grey areas with the minimum-need rule
- Agree a written definition
- Practice
1. Which is an emergency?
- Practice
2. Your annual insurance is due. Where should it come from?
- Practice
3. Your phone breaks and you want a better model. The fund should pay for…
- Key idea
4. Which statement best explains "Decide before the moment"?
- Key idea
5. Which statement best explains "All three must be true"?
- Key idea
6. Which statement best explains "Cover the minimum need"?
- Action plan
7. In the action plan, which step comes first?
- Mistake to avoid
8. Which of these is a mistake this lesson warns against?
- Mistake to avoid
9. Which of these is a mistake this lesson warns against?
A $480 repair is a true emergency, but you also want a $150 upgrade at the same time. How much comes from the emergency fund?
Show the answer
$480
Only the minimum need ($480). The $150 upgrade comes from spending money or savings for wants.
Write three things that count as an emergency in your household.
More tests in this bootcamp
- Size your emergency fund for real life
- Is it an emergency? Decide before you spend
- Find room in your budget for an emergency fund
- Give your cash three jobs: spending, buffer and emergencies
- Compare high-yield savings beyond the headline rate
- Rebuild your emergency fund after a setback
- See what inflation does to your cash savings
- Final exam: Emergency fund and savings