Do you have 3 to 6 months of living expenses tucked away in a safe place? Some people are fanatical about it - “I don't care if you're Donald Trump, you need an emergency fund” - but I subscribe to a more situationally based philosophy.

Take for instance, I don't owe anyone any money – no student loans, no car loans, no mortgages, no balance on a credit line – and I am in control of my paycheck. However, I also travel a great deal. Before you read on, ask yourself if you think I need an emergency fund.

I don't think I do. Why? Well, I can cover two months of living expenses in one “sale.” Additionally, I'm single and happy that way, so marital money problems are far from view. If the Internet crashed tomorrow and I couldn't work like this anymore, I would throw a party with the last of my cash and build a cabin somewhere in the wilderness.

You think I'm kidding. Well, go tell Al Gore to pull the plug on the 'net and I'll prove it :)

In all seriousness though, some people don't need an emergency fund. However, if you're planning or expecting any major changes – divorce, marriage, buying a house, selling a house, death, or making an investment – then you should definitely put aside some cash just in case.

And “making an investment” includes getting into the stock market, 401(k), or a college savings plan. It becomes untouchable money, and because how that money grows (or shrinks) is completely out of your hands, you need to make sure everything else will be taken care of for the duration of your investment.

When you have a lot going on, that means a lot can go wrong – so make sure you are as liquid as possible in case the proverbial crap hits the fan.

You can find out more about Patricia Mayo and her other projects at Mayobrains.com or ComHacker.org.