Where should I keep my emergency fund?

Question

Right now, my household income is stable most months but there are occasional large expenses and periods when income could fall. Right now, I have cash, investments, and access to credit, but not all of those resources are equally safe or available during a true emergency. The part I am trying to resolve is how much emergency cash to keep and where it belongs.

Soradin · Accepted Answer

It should generally be accessible, stable, and separate from investments that may fall when the money is needed. Within the broader financial plan, an emergency fund is money reserved for unexpected expenses and income interruptions. A useful written plan should make clear cash flow, time horizon, taxes, liquidity, and downside risk before money is committed.

Where should I keep my emergency fund?

Soradin

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