Many people confuse a Budget with Cash Flow. A budget is where the money is going out every month, regardless of when it goes. Once you establish the budget, then you work on the cash flow.
Most people are also backwards on savings and credit. Credit is for emergencies (i.e. spending money you don’t have). We tend to use credit like cash. We buy “things” with it. Don’t buy things with money you don’t have.
Example: My sister had a $1,800 hospital bill. I told her to borrow the money and pay it off. Instead she paid them half of what they asked every month and they sent her to collections. Now she’s owes $3,000 and she will owe that $3,000 until she dies.
No, the Emergency Fund is for Emergencies like this. When one doesn't have an Emergency fund they are forced to use credit. When one doesn't have Medical Insurance it is even worse. She should have talked to the Hospital about a different payment plan. Most hospitals will make the adjustments for those with hardships.
Living without an Emergency Fund is not Living within your Means because Murphy will come in to live with you. And he brings his broke friends with him; Desperate, Dumb and Stupid.