Back in February I was in a car accident and my car was totaled. I had insurance but it didn't cover all of my replacement car so I had to dip into my emergency fund to cover the rest. As of today I built my fund back up! I have $6000, which is about 4 months of living expenses.
It's hard just leaving that much cash money not hedged against inflation. I guess I could put it in a high yield savings account. SmartyPig.com has a 1.35% APY savings account which I'm considering and I'm also looking around at money market funds. I'll let you know what I end up doing with it.