In life, there are things that we expect and there are other things that we don’t expect. From a finance point of view, we expect to have regular payments for things like rent or car payments, but there can also be unexpected negative events such as a car breaking down or medical expenses. To prepare for these unexpected events, it is important to have an emergency fund equal to three to six months of your needed expenditures. For example, if your needs are $2,000 a month, then you should have an emergency fund of $6,000 to $12,000. Having this emergency fund will help you weather any unexpected storms. Additionally, it is beneficial to save more money and have an even bigger emergency fund.