<prompt> Human: I have noticed that in PF there is always a recommendation that people have an emergency fund, but there seems to be a lot of confusion on what an emergency fund is and more importantly what it isnt.I believe every person should have at least 5 funds I have put them in what I believe is order of importance:1. checking account - for regular montly expenses. Amount determined by a well thought out budget. Includes: rentmortgage, utilities, groceries, phone, fun money, etc.2. easy access savings accountchecking account for non-regular but anticipated expenses. Amount determined by a well thought out budget. Includes doctor visits and Rx co-pays, car maintence oil change, transmission fluid, brakes, tire rotation, etc. Replacement of owned items car 8 - 12 years, roof 20 years, water heater 5-8 years, ac 10-15 years, etc home ownersrenters insurance, tuition, gifts. Lot of other things people will mention below.3. Everyday emergency fund: Savings account for things that will happen that you cant plan for but will still happen. I recommend 2000 to 3000. Nail in your tire a year after you get new ones. Washer hose breaks and ruins floor. Deductible for car crash that they idiot texting caused. BELIEVE me there will be something that you totally didnt see coming but costs money. Dont think this is what a credit card is for! That way leads to a lot of extra money being spent.4. Emergency fund, which is really the catastrophic fund: You lose your job and you still have to feedhouse yourself and your family. Three to nine-months of your take home pay. The less secure your job the more money you need.5. Retirement fund: You will not be able to work indefinately. You need to make sure you arent struggling when your old or force your kids to take care of you. And if you are lucky enough to get matching money, not contributing is simply throwing away a 100 return on investment. That isnt smart.The saddest part of this is that the lowest income people need these funds the most and are the least able to do this. If you are getting a refund, think about paying yourself with putting it in these funds.Assistant: Just my two cents, but I think if you have the right kind of discipline these dont all have to be separate accounts - most of what you list is, for me, in a single fund. For people who have trouble controlling spending or for whom it is helpful to separate them for other reasons I can see the logic, but I dont think its essential to keep them separate.Human: Both agree and disagree. I think you need at least 3. Checking, some type of savings and retirement. My personal way of keeping money is checking for 1 and 2. 401K and personal investment account for 3 long term replacement cost items 5 and a combo of an easy access savings account and a higher rate, but limited access for 3 4. I am lucky that I can have liquid accounts and a good amount in higher return accounts. It doesnt really matter as long as you think of all of these issues. Many people dont have anything beyond 1 and I hope this gives them a priority list and a way to plan with their money.  <response>: Definitely a good priority list - I think its good advice overall in terms of planning, just specifically wanted to point out that they dont have to be actually-separate accounts. 