Many Financial Advisors recommend a three to six month (or more) emergency fund. This fund would cover living expenses in case of job loss or other unanticipated need for funds.

These funds should be in a very safe and accessible location. A credit union share account could help meet your "Emergency Fund" needs. Credit union accounts are safe (Federally Insured by NCUA), and not subject to stock market volatility. There is no penalty for withdrawing the funds either.