<prompt> Human: I often see the question, Do you have an emergency fund of 3-6 months put aside? Or something similar. What entails an emergency fund? Is it enough money to where if you were without a job and had no place to live that you could draw on that fund to get by? When I think of an emergency fund, I think of literal emergencies like an accident or grave illness that could occur at any time.Any thoughts?  <response>: Its anything that you cant see coming. So yes an accident or an illness counts. The 3-6 months expenses part comes in when talking about a job loss. Certain things should not be an emergency though. Most car repairs are not an emergency. You should be putting some money aside every month to deal with repairs. It may not be predictable exactly when it will have a problem but youre guaranteed a problem at some point. 