You often hear financial advisors oftne give this advise. You should have 15% of your annual income in reserves for emergencies. A more accurate mount is your total expanses you accumulate in 9 to 12 month period.
This money should be invested in a money market account at a bank or other financial institution. However it should not be as accessible as your savings and/or checking accounts.
It seems there always an emergency, but don't use this money unless ther is truly an emergency. This does take discipline, but it is achievable