What Is an Emergency Fund?
An emergency fund, also known as a rainy day fund, is a stash of easily
accessible money that has been set aside for emergencies. Having money
stashed away to deal with unexpected events can give you a sense of
security—you’ll know that such an event won’t destroy or derail your financial
plans.
But most people don’t have emergency funds. According to the 2012 National
Financial Capability Study, 56% of Americans don’t have money set aside.
Following is data from the study: