<prompt> Human: Hi All,I am increasing my nest eggemergency fund up to 20k over the next 6 months and Im wondering if just keeping it in a savings account is really the best option. The main reason Im looking to increase this emergency fund is that my wife is going back to school. In the case that I lose my job or we have a major homecar emergency, I want to be able to live for 6 months comfortably. My only hesitance is that 20k is a lot of money to not be getting any benefit out of and Im wondering if my emergency cash should be closer to 5-10k and I should put the rest to work in the SP or something else where I could still access it fairly easily.  <response>: The traditional recommendation is that your emergency fund should equal three to six months worth of your expenses. This is a good rough guideline for choosing a size for your emergency fund that corresponds to your lifestyle and the kind of emergencies you might be expected to face.The emergency fund, as defined above, should normally be kept in a savings account. Anything beyond that amount can be invested more aggressively for a longer term, depending on when you plan to spend it. 