Emergency fund is money set aside for use in cases when you suddenly have to spend on something very important or urgent. It could be anything from job loss, sickness, and unforeseen expense. Actually, you can recognize it easily when you experience it.
Emergency fund, or funds for that matter, should be accessible any time the need for it arises. Personally, I had been aware of the concept of emergency fund during my high school years and I got to build up my own only when I got my first job. I didn’t take it too seriously then. As long as I had some money in my savings account, I thought I was okay.