<prompt> Human: So right now I have 5,500 sitting in a savings account getting 1.15 interest. I have a credit card for if I ever need to make a substantial purchase on short notice.Is there any reason to have more than 1000 between my savings and checking accounts? I feel like I should be putting it to work in a broad ETF like VTSAX, or split between two. I can pay my bills as paychecks come in. I know the risk is if the market falls heavily I could lose a good of my money in the short term.For reference I am on track to max out 401k, IRA, and already have a few thousand bucks in a tech ETF.  <response>: One answer: job loss. Give yourself six months to find another job, so that requires about six months of your current take-home pay saved to pay the bills in a savings account. Investments always run the risk of losing money, however a savings account doesnt carry that kind of risk. Granted, savings accounts have a very low interest rate on them, but that also means there arent penalties for withdrawing the money whenever you need it unlike a 401k loan. 