A true emergency is one you couldn't have seen coming. For example, you get sick and end up with a few unexpected medical bills. Or, your 4-year-old furnace goes out, when you should have had years before you needed to replace it.

Before you take money out of your emergency fund, DaveRamsey.com recommends asking yourself three questions about the situation:

Is it unexpected?
Is it necessary?
Is it urgent?

If you cannot answer yes to these questions, it may not really be an emergency expense. However, this is something every individual has to determine on his or her own. When drafting your budget and your emergency savings, consider your absolute necessities — the things you can't live without. That may be a good starting point in deciding what qualifies as an emergency.