1) Does Mak need an emergency fund in case he loses his job? If so, how much should he be saving and trying to put aside? What type of account would you recommend for the emergency fund? (9 marks - 3 marks for each section) Mak should have an emergency fund even if he was not concerned about losing his job due to downsizing. Generally, it is recommended that he should save about 3-6 months' worth of his total monthly expenses (in this case, $1,600), which would mean that Mak's emergency fund should contain at least $4,800 ($1,600 multiplied by 3). As Mak's take home income per month is $2,000 ($24,000/12) and his monthly expenses are $1,600, he has a net cash flow of $400 per month. To fund his emergency fund as quickly as possible (so that he can start saving for his car), he should deposit the entire $400/month in an account that is easily accessible in case of emergencies, such as a high-yield savings account or short-term GIC's. At this time, it would be my recommendation that he should deposit his funds in a high-yield savings account as it is the easiest to withdraw funds when needed