Excellent advice from Gale Vaz Oxlade

I was so very surprised to see that Gail from TDDUP posted on my blog with some very sound advice. I respect her so very much and to have her take the time to write means a lot to me. I don't know if she'll ever be back to see my reply.

Her concern was that I may be allocating too much money to debt repayment and not enough to the emergency fund, fun category and savings. I have a large, 6 figure, retirement nest egg and continue to put 10% of my income toward my retirement each month. I have over one full month's worth of expenses in my chequing account at all times as I live on last month's money (month-end pay for July will be for September's expenses as August's money is already in the bank) and I have a misc. emergency account of $1000. I do allow room in my budget for "fun" such as dinners out with the girls, taking in a movie from time to time, spending a fun Saturday morning with a friend at the Farmer's Market with brunch to follow, a monthly facial, etc. I actually think I might allow myself too much "fun" money and may need to trim this back a bit. I also have a savings account that I put $75/month into that is not earmarked for anything in particular, though could become my vacation fund.

I do agree that the emergency fund could and should be larger and this is something I will concentrate on, likely by trimming back the "fun" money, while still allowing myself room for entertainment.