text:  Tara says, we have a $1.2 million net worth, but we don't have three to six months of savings in cash. The majority of our money is in investments, but we do have cash in our sinking funds for vacations, insurance, etc. We also have stock in a utility company that my husband was gifted from his grandparents, and it's valued at what a three to six month emergency fund would be for us. Could we consider our sinking funds and or the stock as part of our baby step three, or does it need to be cash?