<prompt> Human: Lets say you have an emergency fund. 10,000. And savings 10,000.You just lost your water heater. Which do you use to pay for it?I think of an emergency fund as only if you are out of a job and have no income.In my mind if I have a job I use savings.So does it matter? Is there a difference?  <response>: Doesnt matter - money is fungible. Either way youll end up with 20K minus whatever the new water heater costs. Its like calling money in your left pocket an emergency fund, and money in your right pocket savings. Either way, if you spend it, you end up with the same overall amount. 