Emergency Savings are for a TOTAL LOSS of INCOME, not "stuff" that happens like car repairs (Rainy Day expenses). A total loss of income is usually happens due to:

  1. Divorce
  2. Job Loss
  3. Medical/Mental Disability

If you lose your income, it will take about 3-6 months to get out of the biggest commitments you have like selling your house, renegotiating debts, or stopping childcare. You should have 3-6 months of your monthly expenses plus monthly Annual Needs savings, plus a small cushion, saved and easy to access.  Your Emergency Savings should be liquid at all times.  

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