Tulsa World, Okla., column: How is your emergency fund?

Sep 30, 2009 (Tulsa World - McClatchy-Tribune Information Services via COMTEX) -- RATE | Quote | Chart | News | PowerRating -- Emergency fund: Bankrate.com says every adult needs one. Financial experts recommend we set aside three to six months' living expenses before addressing other saving goals. Bankrate tells us how to create one at

tulsaworld.com/BANKemergencyfund

.

Resolve to survive: This money should never be used for short-, medium- or long-term goals. It's there to deter raiding your 401(k) when you lose your job. As our ancestors were wont to say, "Never eat the seed corn."

How much: The emergency fund is there to keep your family from going into debt after a job loss. If both spouses are working and both jobs are "secure," you could decrease the amount you set aside. Families with two jobs in industries prone to layoffs should build a fund large enough to keep the household for one year. Use a budget worksheet at

tulsaworld.com/BudgetWorksheet

to see how much is needed.

Short-term goals: Once the emergency fund is filled, turn to other priorities such as your short-term and medium-term goals. Short-term goals are family vacations you want to take in two years or the car you want to buy next year. These savings should be liquid -- easy to withdraw when you need them. Try to earn a little interest in a federally insured account where you can't lose any money. Liquidity might mean you're giving up the chance for high returns, but

remember that this chunk of money won't require time to ride out a stock market plunge.

Medium-term goals: As your financial goals become pricier, time horizons push outward to the future -- down payments on homes, kids' college educations, daughters' weddings come to mind -- and you'll need to go beyond belt-tightening and set up mid-term saving goals. You'll need more discipline to stick with these long-duration goals, and you'll need to invest differently: 529 savings plans for tax-free saving for college tuition (

tulsaworld.com/OK529Plan

), investments in mutual funds and other plans with fees and costs.

Follow the money: Short-term and medium-term money can be had from best-rate CDs and money market accounts, but be sure to pick banks that are insured (each account up to $250,000 but expected gains are not insured). Check the safety of your bank, thrift or credit union with Bankrate's "Safe & Sound" at

tulsaworld.com/BANKsafensound

. Online banks offer the best rates because they don't have brick-and-mortar expenses. Find a list of seven best online banks at

tulsaworld.com/Action070509

.

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