Is our emergency fund purely reserved for unemployed / retrenchment purpose?

Hi Bin Rui,

It's never meant to be touched, unless all other avenues have been explored.

That is the basis of 'emergency'.

Need to prepare for the arrival of a baby? Start saving for it. There are many tips and hacks to maximize your money while preparing for a kid.

Downpayment for car? Save and consider the monthly costs of running it. If you can't save the estimated monthly costs before you even get a car, don't bother getting one.

Renovation for a house? Save for it before you even buy the house. Add your applicances slowly as you save up. Probably the fridge, a cupboard, bed and a washing machine is a must first. The TV can come later.

There's no reason you should ever tap on your emergency fund. In fact you should aim to grow it over time. As you move on in life, your expenses will generally creep up. 12 months of expenses 10 years ago probably could only cover 9 months now.

Hello! i think if you are planning for big purchases in the short and long term (I.e car, children's education etc) you would have to allocate them accordingly in a separate account from your emergency funds. After all, emergency funds are saved up for rainy days, not necessarily just an unemployed/retrenchment scenario. It's best not to tap on these funds unless you are really tight on cash.