What type of expenses should I use my emergency fund for?
When a sudden expense pops up, it can feel like an emergency—but that may not always be the case. There are three questions to ask yourself to determine if you need to tap into your emergency savings:
1. Is it unexpected?
2. Is it necessary?
3. Is it urgent ?
The more you answer “yes,” the more likely it’s an emergency and the more it justifies using money from your emergency fund.