An emergency fund called a “rainy day fund” or “cash reserves” is money you have access to in case of a sudden unplanned need. Typically, these funds are in the form of cash or cash equivalents.
Life can be expensive at times. Unexpected expenses are indeed not unexpected. Events like car repair, small medical bills, or broken cell phones are likely to happen occasionally.
Perhaps most importantly, having an emergency fund in place can give you the security to boldly pursue a new opportunity in your career or the confidence to leave an unhealthy workplace.