An e-mail that came in to the Your Turn inbox last week asked about emergency funds:

“It seems the people that work for me have never heard of saving for a rainy day.  After hearing (Monday) morning about the numerous exploits of three men that work for me, all involving moderate to large sums of money (sporting events, trips, and so on), I asked each of them, ‘hey, just curious, how much money do you have in your savings account right now?’  One guy said ‘I don’t know’ with a look that said, ‘I’m embarrassed to tell you the real answer.’  Another said about five hundred dollars, and the third doesn’t have a savings account!  These are all mid-level government employees, not stupid, and they make pretty decent money (I know, I’m their boss).  All are at least 30 years old, and have essentially no money to their names.  I hope none of them breaks a leg on one of their wild weekends.”

This story got me thinking.  I went and Googled “emergency fund” and was shocked to learn that the first three links—all sponsored, of course—were payday lenders.

If you don’t know how payday lenders work, and why they’re awful, check out this article from MSN Money.  The three guys my correspondent wrote about are textbook cases of why these legal loansharks survive.  Any one of them is one accident, one car problem, one plumbing issue, one catastrophe away from a payday lender’s door.

Are you doing any better?

The minimum emergency fund you should have is $1,000.  Most financial planners worth their salt recommend three to six months’ worth of expenses.  That’s the amount you need to survive, not the amount you make, or the amount you bring home. 

And your emergency fund should be readily available, in case you need it quickly.  After all, these are emergencies we’re planning for here.

How much money—easily available cash—do YOU have on hand, and where do you keep it?  Money market?  Plain old savings account at the bank?  Hermetically sealed in a mayonnaise jar on Funk & Wagnall’s back porch?  Share your experience, ideas, and thoughts in the comments below.  Later in the week, I’ll take a look at the various ways you can maximize your money and still keep it close at hand.

Rose (frose@federalnewsradio.com) is the co-host of “Your Turn with Mike Causey” on Federal News Radio AM 1050, which can be heard each Wednesday at 10a.m. EST. Hear archived programs on FederalNewsRadio.com.