It makes perfect sense.
That is, for a person to save at least 3-6 months’ worth of his monthly expenses for emergencies (prolonged sickness, job insecurity). But really, that concept (that comes across as almost common sense, but not really) – does not even cross the mind of those uninitiated in money matters.
Well, it never crossed my mind prior to 2008 (when I have not yet met – er, won, our financial planner).
But now that it has, and the panic has resonated within (a realization that anything can happen), I would be flustered (and yes, panicky) when our emergency funds fall below that imaginary line (6 months’ expenses, in our case).
Fighting to keep the amount intact is important, but it is also important that this fund is liquid, that it is reachable, that it is safe. But it would also be great if it could also earn interest, right?