If you've been reading the Budgeting site here at About.com for awhile, you've probably seen me roll out article after article about the importance of building an emergency fund. This is a last-resort fund that you tap in dire situations, such as if you lose your job.
But you should also maintain a cash cushion in your checking account to protect you from bouncing checks or paying overdraft fees. In this latest article, I explain the concept of a cash cushion, I describe why it's important -- and I tell you why, I'm sorry to say, it isn't considered part of your emergency fund.
Source: http://budgeting.about.com/b/2012/11/05/wha-s-a-cash-cushion.htm
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