Emergency Savings are for a TOTAL LOSS of INCOME, not "stuff" that happens like car repairs (Rainy Day expenses). A total loss of income is usually happens due to:
- Job Loss
- Medical/Mental Disability
If you lose your income, it will take about 3-6 months to get out of the biggest commitments you have like selling your house, renegotiating debts, or stopping childcare. You should have 3-6 months of your monthly expenses plus monthly Annual Needs savings, plus a small cushion, saved and easy to access. Your Emergency Savings should be liquid at all times.