I no longer think of my e-fund as covering regular living expenses. It's now for major insurance deductibles, major work on the house, and the biggest potential expense: uncovered health care expenses (such as hearing aids, assisted living/nursing home/aides needed in the home). I didn't answer the poll since e-fund doesn't apply since DH has been retired a few years and I am semi-retired. However, we do include the things you talk about in the budget. As a practical matter, if a really large expense occurred (think new roof for example - although we shouldn't have to have one for many years), we have a taxable account where we keep some money that we could use for that kind of expense without having to withdraw from a retirement account and have a large tax hit. That is, we use the retirement account more for regular living expense withdrawals and we would use the taxable account large irregular expenses. So I guess we could sort of think of it as an efund. It is equal to roughly a year's expenses.
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