The $1,000 is meant to catch the small things that must be dealt with. A new altenator, a leaking roof, a band-aid furnace fix to get you through another year, etc. No, it won't allow you to continue living your current lifestyle if you lose your job without warning. I understand what you're saying, but I don't agree with the concept. You can rackup over 1,000 pretty darn quickly and it wouldn't take a whole heck of a lot (what happens if you need a new alternator, then a week later your furnace goes out?). Heck, where are your property insurance deductibles set? Out of pocket expenses for your medical insurance? I just don't think your .001% estimates are even in the ball park. It seems like you're setting yourself up to HAVE to go back to the credit cards because you're not sufficiently prepared and take a huge step back in your efforts, if not completely derail them.