RE: The backup Funds...
It is very good to have savings in order to grow because some situation might come up later that you didn't planned for then it is your savings that will help you solve the problem.
The reason why we must save up is because we all don't know what is coming next
If you are a salary worker you can get sacked at anytime and once you have savings you can start another life.
But if you don't then you will have to start from the scratch which might affect your future if care is not taking.