How do you calculate number of months in your EF?
I know I've asked this question before, but I don't feel like I've ever gotten a sense of what most people do.
Do you simply count one month of net income? Or do you calculate the minimum you would need to cover bills and basic living expenses?
For instance, if you make $6000 a month, and you spend $3000 on mortgage, utilities and other necessary bills but put $2000 into savings and retirement while spending $1000 in discretionary items (cable, eating out, etc.), would you count a $6000 emergency fund as covering one month of expenses or two?
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