An emergency fund is a stash of money you set aside to cover unexpected financial expenses. If you are unprepared for these emergencies, these expenses can snow ball and become very costly and the related stress will eat you away. Commonest emergencies for which you need to keep an emergency fund: Job loss – for you or for your significant other Family health emergency (medical or dental) Emergency health care for your beloved pet Unanticipated car repairs Unplanned home repairs (emergency plumbing issues, premature appliance breakdown) Bigger than expected tax bill (can be due to a debt that was forgiven) ...