The emergency fund is for things like car repairs or any other minor emergency that might show up. Things get old and need to be fixed or replaced so it is best to put some money away to take care of the problem in advance. It is better to have this money put away to pay for the repairs outright than to go into debt again and have to pay a credit company interest. Never give a credit company any more than you have to. It is your money and the idea is to keep it in your pocket as much as possible.
For this fund, I would recommend around two thousand dollars. This amount should cover the minor things. As with any savings plan, more if you can or start smaller and work your way up.