<prompt> Human: I have been trying Betterment for almost a year now. One of the first goals I set up was an Emergency Fund. I put in 6 months of expenses with a horizon of 1 year the allocation is 60 bonds and 40 stocks. Last week my dog had an emergency and I decided to tap that money to pay for her expenses. It was when it hit me, pretty much my emergency fund was paying for the emergencies it self I didnt use any of the money I put in and on top of that I still had around a very decent amount of money for the growth left.I still have 12 months of expenses in my checking account and my retirement accounts and other investments are really healthy.Is having an invested emergency fund just as I described a wise idea? Or how do you guys handle this cases?  <response>: If you have 12 months expenses in your checking account...then you havent really invested your emergency fund, right? Youre just talking about another pot of taxable investment.For most people, subjecting their main emergency savings 3-6mos expenses to market risk is a bad idea. 