Say you’re standing at the checkout counter of an electronics store, and the cashier asks if you’d like to purchase an extended warranty on your new flat screen. Should you do it?
What if you lost your job tomorrow? Would you have money to live on until you found another job? What if something happened to your car and you were facing a $1,000 repair bill? What if you get sick and end up in the hospital for a few days, would your insurance cover the whole cost? These are just some of the possible uses for an emergency fund.