CASHCash Emergency Fund:
I live in an earthquake area. I think it's important to have cash (and water!) on hand just in case...
SAVINGS LINKED TO CHECKINGSlush Fund:
The goal is to have one full month's worth of expenses. I know many people set aside some money every month for upcoming and irregular expenses such as car insurance. None of my irregular expenses are more than a typical months worth of expenses. In addition, I like to have a full month of savings easily accessible to my checking account such that I can pay the bills if something happens to my paycheck (there were 5 months straight that my university messed up my paycheck...I may have become paranoid) so I aim to have a months worth of salary in my slush fund.