Well, that’s a highly debated topic. The answer is (as always), it DEPENDS. Before I get into how much is enough, let’s backtrack and talk a little about the purpose of an emergency fund.
Webster’s dictionary says that an emergency fund is “an unforeseen combination of circumstances or the resulting state that calls for immediate action.”
How many times have you heard people complaining about unexpected auto repairs? Things like transmission failures, blown head gaskets, and serious engine damage.
Having lived with my parents for 22 years, I’m all too familiar with home repairs. Septic tanks, water heaters, plumbing leaks, upgrading windows, and air handler units come to mind.