I think of our emergency fund as treading water financially until things get back on track. That means all of the bills are paid with minimal disruption of our normal life. Obviously we wouldn't go out to eat, but I'm not sure we'd be cancelling Netflix on the first day either. We'd still keep phone/internet access (which would be needed for finding a new job), but
the saving and investing we normally do every month would be put on hold for a while. We try to live frugally, so our 'bare minimum' monthly bills are relatively low.
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