Key Post How much of an emergency fund do I need?

Sarenco said:

Well, AVCs, (after-tax) savings and mortgage payments ahead of schedule are all forms of saving - not expenditure.

However, I wouldn't exclude discretionary spending from the calculation of your average expenditure.

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I mulled over that one for a while, but it is a rainy-day/emergency fund we’re talking about.

So in an emergency, personally, I’d pare my discretionary spending right back (i.e. clothes, coffee, travel, booze, food, etc).

I think including unused credit card limits as part of your emergency fund makes a lot of sense too.

It reduces the requirement to hold cash.

For me we have had the rainy day over the last 15 months or so. I basically only spent on food and utilities during that period. My current account has a large credit balance as a result.

With the shops opening again I find that I have purchased very little on myself. A bit of tomato feed for the veggies and a few packs of slug pellets. Gardening stuff.

A few takeout coffees. The odd Fish and Chips.

My "good" clothes were in hibernation so no need to buy anything there.

I will spend a few quid on getting my windows cleaned but that's about it.

When I can get back flying again I will start spending again but that may not be for awhile yet.