We recommend that you have three to six months' worth of living expenses put aside for emergencies, for example, if business doesn't meet expectations. Ideally, the money you need should be in places that are easy to get to. Bank and credit union savings accounts, and bank, credit union, and mutual fund money market accounts. These are liquid, which means you can turn them into cash easily.
Mutual fund money market accounts usually pay a higher interest rate than those in banks and credit unions. Although they are generally regarded as safe, you should know that they are not federally insured the way most banks are for deposits of up to $250,000.
Here are some other sources you can look to if you have a financial emergency: