Re: Emergency Fund - do you have one?
My wife and I have 6 months of living expenses in our emergency fund. It's not 6 months of income; when figuring our emergency fund, we didn't include savings, taxes, 401k, etc, because we wouldn't need to pay for those things if we found ourselves in a situation that warranted tapping into our emergency fund.
Which brings me to a question - you mention that you 'average' 3 months. Do you use it regularly? We maintain a small amount of slush money for smoothing month to month costs, but our emergency savings is absolutely and totally untouchable except in an emergency. A withdrawal is never (and hopefully never will be) made from that account.
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