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Why do we need an emergency fund?

Bogleheads • View forum - Investing - Help with Personal Investments - www.bogleheads.org
We have been told again and again that we need to have an emergency fund worth at least 3 months of income or expenses for rainy days.

I have never had an emergency fund, and all I have is money invested and money to be invested. I did not have college fund for my kids too, but sent both of them to private colleges. Don't get me wrong. I just make an average salary, and have not inherited any money.

I have a really "un-bogleheading" and stupid question: why we need an emergency fund? Or, in which case an emergency fund is used?

Why not just allocate your assets appropriately, but not designate an emergency fund? I also wonder how this "rainy day" is defined? I just cannot think of anything other than market pullback.

It reminds me of my friend who saves specifically for buying a computer, and different pots of money for different purposes. I just cannot think myself doing that.


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