Emergency Fund - In life, things happen that we don't expect,
car breaks down or an appliance dies, and unless you have an emergency
fund tucked away you will end up having to put the repair bill or purchase
on your credit car or borrow money on loan. Both of these cost
you money and do not assist you with keeping your debts low, so it is
always good to keep an emergency fund tucked away in a savings account.
I like to keep the equivalent of four months income in the account,
this way most emergencies are paid, before they happen. This is
always a sound plan.