Have you ever heard anybody tell you that they have just built their emergency fund? If you have, then did you ever ask them what an emergency fund actually is? I ask this because most people that I talk with have no clue what an emergency fund is or why it is important to their financial future.
What you need to know is that an emergency fund is where you save money for emergencies only. For example, losing your job would be considered an emergency. This is also the reason why an emergency fund should be at least 6 months of your total monthly expenses. Now, I know that saving this much money could be rather difficult for you but the nice thing about having it is that it will make the rest of your life that much easier. Trust me, everybody that has a 6 month emergency fund is stress free and on their way to a successful financial future.