Throughout life we have our ups and our downs, it is just part of the path which we walk. But sometimes our downs include financial downs, where a big bill comes in or a boiler breaks.
We get things throw at us from all sides and we are just stuck in the middle. We rush to our savings and use them to cover these unforseen costs and then carry on. But there is the problem most people have. We take it out our savings, savings which are there to invest, buy a house, a new car or a holiday.
This is where an emergency fund comes into play. You have worked hard to create a savings pot for a goal only for it to be wiped out, this can be deflating to say the least. When you have a emergency fund, you need not to worry. The soul purpose for the emergency fund is to fund these hickups in life, you wont have the guilt of dipping into your savings as this is why you've set money aside.
Creating this kind fund is one of the first things I ask someone when they ask for advice. It is one of the first steps to wealth and freedom in my opinion.
I would recommend this to anyone, no matter what stage nor how much money you have.