I'm sure most of us have all heard of the advice to have around 3 to 6 months of cash on hand in case of emergency. I'm not going to get into some of the steps in getting there today, but rather some of the things to keep in mind as you put this money away. What is the best place to hold it?

Of course there are three things to take account of in reference to your money. You want to be able to have immediate access to it. It must in a place that is safe. And you still want it to be working for you.

• Easy Access. You want to have easy access to your money, but not so easy that you'll be tempted to spend some because of that ease. So the thing to do here is to set up a special account for that purpose alone.
• Safe. Obviously this isn't money that you would put into the stock market where it could possibly lose of lot of its value at the time when you needed it. You want stability along with absolutely no risk of losing any of your principle.
• Growth. I hope that you don't think that because this is your safe money that you can't have some growth while its backing up your potential unforeseen financial problems. No, you should at least be making a little interest on it while its in this separate account.

At the present time you could put it in a traditional savings account, and that would work for part of your strategy, but wouldn't make any money at all.

If your not adverse to a straight internet company, there is a money-market account you could invest in called Emigrant Direct.

It is currently offering 4.25%. Emigrant Direct is run by New York City's Emigrant Bank. Here is how it is described from their website:

• No Fees. No Minimums.
• No need to change your checking account. Your American Dream Savings Account™ will be linked to your current checking account.
• Up late? Access your account 24/7 at EmigrantDirect.com.
• Open your account online - It's quick and easy.
• Open an account by mail

From everything I've heard and read from others, this is simply one of the best plays that you can do with your money in the purpose we're talking about. This is one I would definitely check closely.