What is an Emergency Fund?

What is an Emergency Fund? An Emergency Fund is a rainy day fund of 3 to 6 months of living expenses. It is for those unexpected events and there will be unexpected events in your life: a job loss, pay cut, new tires for the car, a new transmission, the washer just flooded your basement . . . it is not an investment or a Jamaica Fund. Having an Emergency Fund will put your mind at ease when an unexpected expense arises - and people "Christmas" is not unexpected - it comes every year on the 25th of December :)