Steve: I agree with you. I used the 4% figure the same way we do when we are figuring out what we need in retirement scenarios. I personally know that my costs have gone up more than 4%. That's why I said that each person needs to revisit the emergency fund each year.
I don't think that I would decrease it. Instead of 8 or 9 months of an emergency fund; I may have 11 or 12 months. In my husbands case, that is ideal since he is self-employed and without alot of benefits that some people have.
It is true, there is no one size fits all ideal. There are guidelines to go by and also what you need in there to sleep soundly at night.
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