<prompt> Human: I keep approximately 3k in my checking account to do business with. My paycheck comes here too and I pay my credit card from here, as well as rent.Anything additional over 3k I transfer to savings in 500 increments. I currently have 10k sitting in here as my emergency fund, which is approximately one full year of expenses.I have a 401k and IRA with larger sums of money I never plan on touching and 50k in mutual funds that I could tap into anytime namely for a new car, house, etc. I dont have any plans for a house in the next 10 years, but maybe a car in the next 2-3.Would it be a safe bet to reduce my emergency fund to 6 months 5k if I have the 2nd backup that I could tap into if needed and even a 3rd backup if you could the IRA contributions only.Advice appreciated.  <response>: is 6 months expenses really only 5k? If so then sure, put that money somewhere else where it can earn more. If you have a certain goal in mind like the car it may be better to have a separate account where you save for that. 