An emergency fund is an amount of money that you save for hard times. Out of sight and out of mind, you dont use it until you absolutely, positively need it. Many advocate for at least $1000 in savings to be held in an easily accessible location (i.e. in cash or a savings account). While $1000 is a frugal choice, Id say you probably want a little more than that. If you can save around $3000 dollars for your emergency fund, it will go a long way during hard times.