Emergency funds are normally created to help during financial emergencies. let's say you lose your job and you do not have any income source. If you have managed emergency funds, you will use your emergency funds to pay the bills until you build your income. Or, let's say you had an accident and you need money for immediate medical attention, if you had maintained emergency funds, you would not have a financial crunch. Creating an emergency fund is crucial, especially if you rely solely on a monthly income and do not have a secondary income source. Emergency funds will ensure financial stability during unforeseen circumstances.