According to this same report, only 40% of families have enough in savings to cover three months of expenses, with an even lower percentage having the usually recommended six months worth of savings.

This is frightening to us, as having an emergency fund can greatly help a person get through tough parts in life.

Emergency funds are helpful in situations such as:

An emergency fund can help you if you lose your job. No matter how stable you think your job is, there is always a chance that something could happen when you will need money fast. What would you do if you lost your job and didn’t have an emergency fund?
An emergency fund is a good idea if you have a car. You just never know when it will need a repair.
An emergency fund is necessary if you own a home. One of the lucky things that homeowners often get to deal with is an unexpected home repair. Having an emergency fund can help you if your basement floods, if a hole in your roof forms, and more.
An emergency fund can protect you in many other areas as well. This includes medical costs for you or your pet, needing to take time off of work, wanting to visit a sick loved one or friend, and so on. The list of reasons for why you might need an emergency fund can be long.

Learn more about this at 7 Steps to Create an Emergency Savings Fund.