Let's define what a critical fund is. An emergency fund is an bill set aside for events. Pretty simple, huh?! It is not money stored for holidays. It is not money to cover an investment opportunity. Is certainly money reserved for days gone by when something vital for the family breaks or must repaired immediately and there isnt enough in the budget category (i.e. home repair) to pay the dilemma. Every family should have "X" money set aside each month to cover the basics (home repairs, clothing, car repairs, and so.). Normal repairs and maintenance should leave the monthly budget allotments. If that money is not used one month, it is added to another one month. It continually gets larger until a need comes up and some is taken.

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Money Market Account (MMA). Next best position is in a Money Market Account. An MMA earns a little better interest than a savings accounts. Many allow you to write a good.