What is an emergency fund primarily used for? Unexpected financial emergencies Regular monthly expenses Long-term investments Entertainment purchases

## Step 1<br />An emergency fund is a financial safety net that is set aside to cover unexpected expenses. These expenses could include sudden job loss, a major unplanned expense such as a car repair, or any other financial emergency. <br /><br />## Step 2<br />The purpose of an emergency fund is not to cover regular monthly expenses, long-term investments, or entertainment purchases. These are typically planned expenses and not unexpected emergencies.<br /><br />## Step 3<br />The emergency fund is meant to cover unexpected expenses that require immediate attention and cannot be delayed until regular income is received.