Should I Use My Emergency Fund? A Helpful Decision Tree
The Emergency Fund's purpose is to be used in the event of an actual emergency. Unfortunately, we often use lack of planning or impatience as an excuse to use our Emergency Fund. If you have a true, unplanned, urgent need, use it. Otherwise either find room in the budget or save for the purchase!
Never heard of an Emergency Fund? I recommend that you have 3-6 months of household expenses set aside in a savings account for emergency use only. This "rainy day fund" is there to protect your other assets and to stop you from going into debt when an emergency occurs. It's a bit like insurance; it may not be making you money, but it is vitally important to your financial well-being.