Contingency money, also known as emergency fund, safety net, rainy day funds, cushion fund, backup money, and reserve cash, refers to money that you set aside for unforeseen circumstances. Emergencies like loss of a job, medical expenses, car or home repairs, or any other unexpected expenses can leave you financially vulnerable. By keeping aside contingency money, you can gain peace of mind knowing that you have a financial cushion to fall back on during tough times. Having alternative sources of income, building your savings and investing in a diversified portfolio are some ways to safeguard yourself against financial contingencies that life throws your way.