Double-Check Your Emergency Fund Balance

After decades of getting by on borrowed dimes, Americans suddenly have gotten serious about saving. The about-face has been abrupt: The national savings rate has swung from an anemic 0.57% in 2007 to a downright robust 6.9% recently, according to the Bureau of Economic Analysis.

Economists are quick to point out that our newfound frugality has a dark side, given that consumer spending makes up a whopping 70% of GDP. And so we begin to see the "paradox of thrift" -- the more we save, the longer it'll take the nation to recover.

Bummer, eh? Yes, it is. But what it's not is an excuse to take it upon yourself to grease the wheels of capitalism and splurge. If you've begun following the herd of money hoarders, keep it up. But of course, that leads us to the inflation-adjusted million-dollar question ...

How Much Is Enough?
You've probably heard the rule of thumb about keeping enough money to cover three months of living expenses in your account at all times. That's sound soundbite advice, but in practice you need to apply a little more thought to personalize that dollar figure.

To come up with your ideal savings number, ask yourself:

Do You Have Dependents?
How many warm bodies rely on your ability to earn a regular paycheck? The fewer people who depend on your income, the less you can safely get by with.

How Safe Is Your Job?
Do you work in a niche industry? Is your company's business in high demand or on the demise? Do you have specialized skills that transcend industries, or are you so specialized that finding the right fit will take a while? Evaluate your marketability, and if you find it lacking, beef up by taking classes or even paying for training on your own.

Can You Make Money on Your Own?
If company layoffs occur, could you work on contract for your former employer? Could you freelance? Are you willing to sling burgers or take in a renter to get by for a while? Your flexibility — e.g., being willing and able to move to a new locale for work — should be factored in to your savings equation.

Do You Have Access to Credit?
If you've got it, keep it — and keep it in good shape, too. Covering emergency expenses with plastic (or a home equity loan) is not an ideal solution. Still, this is a lifeline you should preserve, should worse come to worst.

By answering these questions, you should have a much better idea of how much in emergency savings is enough for you.

And remember: When we talk about an emergency fund, we're talking actual emergencies, not "emergency vacations" or "emergency wardrobe augmentation."

Still, life happens, and not always right on schedule.

How to Make the Best of a Bad Borrowing Situation

Sometimes it's necessary to free up cash, and quickly. If that happens, and you don't have an adequate emergency fund, there are other places to get the cash. None of these options is great, or even good. But if you must, you must. Here's a general pecking order of places to get the cash:

Call in Those IOUs
Think about who owes you, and start at the office. If you have a flexible-spending account or have incurred reimbursable business expenses, submit your receipts. If you regularly get a tax refund, adjust your withholding. Doing so will immediately increase your take-home pay.

Sell Stuff
You may be surprised how much you can make off of stuff that's just gathering dust. Clean house and hold a garage sale, or sell things on eBay or Craigslist.

Sell Your Subpar Investments
Identify stocks and mutual funds (or even CDs or bonds) that you hold outside your regular retirement accounts. In tax terms, it's best to sell the ones that have lost you money. If you sell at a loss, you can offset other gains and pay less in taxes on those. But if you've made money, prepare to pay those capital-gains taxes come next April.

Put It on Plastic
Credit card debt can be a slippery slope. If you have no choice but to run up your credit cards, come up with a payoff plan ASAP.

Borrow From Your Home Very, Very Carefully
If you must, borrowing against your home equity will probably provide you the lowest rate, and the interest may be tax-deductible. That said, proceed with caution. You're risking the roof over your head (a.k.a. a secured asset) should you be unable to pay the money back.

Borrow From Your Future Self
Here again, I urge caution. You pay a steep price — both in taxes and lost future growth — when you dip into your retirement accounts before age 59 1/2. Before that age, you'll generally pay a 10% penalty and ordinary income tax for money withdrawn from traditional IRAs and 401(k)s. (You may be able to get the penalty waived in some emergency medical circumstances, but check in at www.IRS.gov first.). Borrowing from a Roth IRA is a better option. You can withdraw your contributions (though not your investment gains) at any time, without a tax penalty.

Scared into saving more? Good! Even if layoffs aren't looming and no other money maladies seem likely, an emergency stash of cash is what keeps you from painting yourself into a financial tight spot — a corner you can easily avoid by making the right arrangements.

To avoid non-emergency emergency spending, Fool.com columnist Dayana Yochim keeps her emergency cash stash someplace where it cannot be accessed by an ATM.