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Originally Posted by LateBloomer
Something else I am curious about is what constitutes a true emergency? Is it the unexpected vehicle breakdown, the co-pay to a Doctor when your child has a concussion or the arrival of unannounced, really good friends from out-of-town and the decision to go out to eat at the last minute? Is it an emotional issue or one of practicality?
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I think of an emergency as unexpected medical expenses, job loss, loss of spouse, major repairs (unexpected), etc.
But many other people will use their emergency fund as a "slush fund", to fund entertainment expenses (the friends who visit from out of town), vacations, etc. - in addition to funding emergencies.
I'd say it's whatever works best for you, as long as you have funds set aside for when you have a true emergency!