I completely agree with you on the importance of having an emergency fund. However, as I explain here, the amount you need to save in it depends on many factors having to do with your financial obligations and your safety net. Some can be fine with 3 months of expenses, while others need more than 12 months of expenses.

As for where to put it, my favorite strategy is to put about 1/3–1/2 in high-interest savings accounts or money market accounts, and building up the rest in Roth IRAs. That latter because 5 years after the first contribution you’re allowed to pull out every cent you put in (but not the earnings) without paying tax or penalties. Also, this way you’re not letting a huge chunk of money just sit there earning next to nothing.