Here's the five emergency funds you need:
- The family emergency fund. Kept in the bank or other very safe location, comprised of enough cash for six month's of expenses, accessible by both spouses.
- Your emergency fund. Kept in a safe location, comprised of $1000 to $2000, inaccessible by your spouse (however your spouse should be able to access the funds in the event of your death).
- Your spouse's emergency fund. Kept in a safe location, comprised of $1000 to $2000, inaccessible by you (although you should be able to access the funds in the event of your spouse's death).
- A small emergency fund for each child. Kept in a safe yet accessible location, comprised of around $500, accessible by you and your child (the challenge is to make the money accessible by your child in the event that they have a major crisis--ie: your death or incapacitation--yet kept in such a way they can't get to it for video games or the like).
- And random small piles of cash in a variety of locations (I keep about $500 in each of the following location: my vehicle, my BOB, my office, and my home...a bit more in my home).