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.
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