Yes, I have had emergencies and yes some have been very expensive. Let me offer a concrete example.
In baby step 1 of Dave’s Total Money Makeover plan, one is supposed to have a baby emergency fund of $1K. No more, no less. I won’t go into the “why” for that amount unless you are curious.
Well, I had a problem with my water heater mid month and could have used my EF to get it fixed. Instead, I found a way to cobble it up and light it every morning to warm the water for a shower. That got me through the month. I just made sure to have the water heater repair work put into my budget that following month.
The kicker is that with that mindset, I then had time to “shop” plumbers to find the best overall value for the dollars I was spending.
Now I have a fully funded EF that is the equivalent of 6 months worth of expenses for me. I have found that now I very rarely have true emergencies. Instead, I have inconveniences. You will also find that Murphy doesn’t visit as often when you have an emergency fund in place.
I’d consider a water heater an inconvenience. Helping my sister escape from her literally homicidal husband and get another place to live was an emergency (and the SOB pleaded down to some BS misdemeanor!). I had two other emergencies of that level in the last fourteen months and I’ve rebuilt my Baby EF three times, but I still got all but the last plastic paid off, and it’s down to under a paycheck. Two more months, two more months, and I can start working on the long-term fund.