I think I have said something like this everytime EF's come up. Once you get to an amount that is a good deal more than your EF, then I would suggest investing a good portion of that money rather than having it sit in a money market account earning a few %. If 3-6 months of income is 25K, and you get to 30K, then I would keep 5 in a MMA and invest the other 25K. I know others will disagree, but I have rarely had a significant emergency that the 5 grand couldn't cover. The other 25lK could be in a mutual fund earning singificantly more interest. You could always pull it if you need it. I also know some will say that you could then be selling it at a bad time and at a loss. Well, if I didn't have an emergency for a few years and it was earnig 9-10% as oppossed to 4-5, then I am ahead! It is all probability and as I said, I have rarely had an emergency that is that significant.
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