Gin1984, no, we spend more like 10K each summer. The 25K was a number we arrived at by doing a rough calculation similar to what alwaysbeenasaver suggested since 25K is about 15% of our income, and we don't work 16% of the year. After reading this site, I'm learning that might be unnecessary. I guess I can keep 10 K in checking, then put the other 15K in stocks? What do you do for emergencies, just suffer any withdrawal penalties? We 403b, 529, and IRA accounts, but those are for long term savings. Are their accounts you are happy with for your emergency fund? I'm new here, so I apologize if this is a dumb question. I'm sure there is a better way to keep an EF than in the checking account. Thanks for your input!