The emergency fund will protect the individual or family against unexpected situations. These unexpected situations might be unemployment, health care costs not covered by insurance, or property losses not covered by insurance. The second thing to do is to purchase adequate insurance. The next thing one might want is to provide for the financial security of yourself and your family. You want to be able to meet all your financial needs without straining your resources.
Many people have other dependents they have to take care of.
This might include elderly parents. As time passes, many people want to be able to fund in part or in full the tuition needs of their children. And many parents also want to be able to fund in part or in whole, special things for their children such as first homes, cars, etc. Another goal many people have is a comfortable standard of living. By this, we mean travel, vacations, a second home, membership in a country club, entertainment, a new home or improvements to your existing home, and relaxation.