An emergency fund is money set aside in a readily accessible savings account for unanticipated events such as unemployment, medical bills, and car repairs. A sum of money to cover basic living costs for three to six months is recommended.

Accumulating Liquid Assets
• These are assets that can be easily converted to cash.
• The majority of these funds should be in accounts that have easy access, like checking accounts.
• Regular or passbook savings and money market accounts …