An emergency fund, as most of you know is usually around 6 months worth of savings that you use for... yep you guessed it, emergencies. A great article from Suze Orman explains why Emergency Cash Is a Necessity, Not a Luxury. One thing I have noticed in life is that unexpected cash emergencies happen all the time. That's right, we should expect things like having to buy new tires for the car, or replacing a dishwasher or any number of hundreds of things that can and most often DO go wrong and will require a large amount of cash. These types of "emergencies" often lead to debt, because most people don't have the cash to pay for it, so the just put it on there credit cards.
Suze gives this advice for people...
I don't care how healthy or young you are, or how financially stressed: You need an emergency cash fund, and you need it now.