Three important questions to ask yourself before spending your emergency fund are:
- Is the expense truly unexpected? (Was the event or expense something you couldn't have predicted or planned for, like a sudden medical bill, job loss, or urgent car repair?)
- Is the expense absolutely necessary? (Does the expense directly impact your daily life, safety, or security and cannot be postponed or avoided?)
- Is the expense urgent? (Does it require immediate attention to prevent further problems or costs, such as urgent home repairs or emergency medical treatment?)
These questions help ensure that the emergency fund is reserved only for genuine financial emergencies and not for routine or non-essential expenses.
