An emergency fund can be an important safety net in the event of any unforeseen expenses. Having an emergency fund to fall back on might prove critical if you’re considering high-risk investments, where it’s possible you’ll lose money.
You may also want to consider how quickly you might need access to your emergency fund, as this will determine where you keep it. For example, you might keep it in a demand deposit account, which offers the flexibility of being able to access your money easily.