Emergency fund clarification personalfinance

Hey guys, so I am new guy here, but I have been reading the FAQ. I just wanted to get some clarification on an emergency fund (EF) use.

My question is, when do I use the money from it? I mean I understand that if I loose my job, then its a no brainier. A refrigerator breaks, take the money from the EF, or some other large unforeseen expenses.

When else can I have dip my fingers into the EF? Can I take out money for 150 copay I have due? What would be the justification for me to use my EF monies?

So right now I have about 10k in an EF, which is about 2 months of salary. So currently every month I add 800 to it.

Should I

1. 
   

   Continue to add 800 each months until I have 30k, 6 months of funds in EF (25 months till end goal)

   
   


2. 
   

   Add a lump sum of 6-7k now and continue to add 800 to EF until 30k, (17.5 months till end goal)

   
   


3. 
   

   Add 5k and end the EF growth at 3 months.

   
   

Side question. I understand that I have to keep the money liquid. So opening a separate checking account at lets says Chase bank work, or is there a better alternative with a higher interest return?

Submitted January 06, 2015 at 09:34AM by asuskingjack http://ift.tt/1Ayv6BM personalfinance