If you can barely save $600 in 2 years, $600 will do jack shit for you in emergency and you better spend it on drugs, at least that way you can forget the pain of living for a moment.
You need your car to get to work. Your car gets a flat. $75 for a used tire.
Without emergency fund: $75 unexpected expense goes on credit card. Since you are still drinking fancy coffee, you have no slack in your finances, and interest starts compounding on that $75 which you cannot pay off. Eventually you figure out you can pay the debt down gradually by cutting back on having someone else make you coffee. You manage to gradually pay down your debt over several months. By the time you pay it off, the tire cost you $150.
With emergency fund: you are pissed off about the flat, but shell out $75 from your emergency fund. Your fund recovers in a couple months.
If you can barely save $600 in 2 years, $600 will do jack shit for you in emergency and you better spend it on drugs, at least that way you can forget the pain of living for a moment.
You need your car to get to work. Your car gets a flat. $75 for a used tire.
Without emergency fund: $75 unexpected expense goes on credit card. Since you are still drinking fancy coffee, you have no slack in your finances, and interest starts compounding on that $75 which you cannot pay off. Eventually you figure out you can pay the debt down gradually by cutting back on having someone else make you coffee. You manage to gradually pay down your debt over several months. By the time you pay it off, the tire cost you $150.
With emergency fund: you are pissed off about the flat, but shell out $75 from your emergency fund. Your fund recovers in a couple months.