Pay attention to Bob Henderson's advise as it mirrors my own. An emergency fund need to be risk free and accessable. Once you are comfortable with the amount, and I woudl suggest three months of your expenses, then consider investments with other funds. Congrats on paying off your debt. Nice job. Be diligent and save "something" every week. Good Luck
It is best to keep it in a savings account, money market, CD, or other low-risk account. You really don't want to take any risk with emergency savings until your savings balance grows large enough that it is more than you need. At that point, you could begin investing excess amounts.
Congratulations on becoming debt-free! As other has mentioned, your emergency fund needs to be accessible when you need it. Otherwise, you may be forced to take out debt to cover unexpected expense like medical bills and so on. It is often recommended to have at least 3 to 6 month worth of your living expense in the emergency account. Once you have enough money saved up, you can start putting your excess cash towards investments.
WalletHub Answers is a free service that helps consumers access financial information. Information on WalletHub Answers is provided “as is” and should not be considered financial, legal or investment advice. WalletHub is not a financial advisor, law firm, “lawyer referral service,” or a substitute for a financial advisor, attorney, or law firm. You may want to hire a professional before making any decision. WalletHub does not endorse any particular contributors and cannot guarantee the quality or reliability of any information posted. The helpfulness of a financial advisor's answer is not indicative of future advisor performance.
WalletHub members have a wealth of knowledge to share, and we encourage everyone to do so while respecting our content guidelines. Please keep in mind that editorial and user-generated content on this page is not reviewed or otherwise endorsed by any financial institution. In addition, it is not a financial institution’s responsibility to ensure all posts and questions are answered.
Ad Disclosure: Certain offers that appear on this site originate from paying advertisers, and this will be noted on an offer’s details page using the designation "Sponsored", where applicable. Advertising may impact how and where products appear on this site (including, for example, the order in which they appear). At WalletHub we try to present a wide array of offers, but our offers do not represent all financial services companies or products.