Read much about personal finance and you'll find there is one question few agree on: How much to set aside as an emergency fund.

The idea for emergency funds is sound. The odds are good we'll all need access to money in a hurry at some point. Nearly everyone encounters a rough spot somewhere along the road in life. When we do we might need fast access to money to see our way through.

The problem with emergency funds is in funding them. You work hard, you save. You invest money in the stock market for the long term because that's where the real investment returns live. You don't want to have to sell stock to meet needs in time of emergency because of the taxes we'll have to pay on our gains.

My answer to the emergency fund question is a simple two step strategy:

1. Keep at least as much in bonds as you need to cover emergencies
2. Get a second credit card, and put your first one away in a safe place.

First, buy bonds. Suppose you decide you need $20,000 in your emergency fund. Your first savings priority should be to have $20,000 worth of Exchange Traded Bond Funds to your name. Investing your emergency savings in a Bond ETF ensures you'll get a top return on a very conservative investment. Your principal may fluctuate a few pennies, but it won't be nearly as volatile as stocks. Your returns will be much better than simply keeping your $20,000 in cash.

If you need money for an emergency - and I hope you never do - your bond ETF shares will be worth almost exactly the $20,000 you invested. The money will be in your checking account as quickly as your broker can execute an electronic transfer.

But in a real emergency, a few days might not be fast enough. That's where the credit card comes in. The credit card you stopped using probably has a nice big credit limit, right? That big fat credit limit is why you put the old one away and got a new one. That big fat credit limit gives you immediate access to emergency funds, even in the middle of the night when the banks are closed.

When the credit card bill comes due, you will have sold some of your bond ETF in order to pay back the balance in full. No late fees and no interest on the balance.

With this simple two step process for setting up your emergency fund, all you need to do is figure out how much you want to have in case of emergency.