Should my emergency fund cover my full spending or just my bare-bones expenses?

Size it to a bare-bones survival budget, not your normal lifestyle. In a real emergency such as a layoff you would cut discretionary spending immediately: dining out, travel, subscriptions, and extra shopping all pause. What you cannot pause is rent or mortgage, utilities, groceries, insurance premiums, minimum debt payments, transportation, and childcare. Add those up to get your monthly survival number, then multiply by the number of months you want covered. This keeps the target realistic instead of intimidating; padding it to your full lifestyle can nearly double the goal and delay you for years. If you want a small comfort margin, add ten percent, but do not let a perfect number stop you from starting. The Budget Analyzer at wealthserene.com/tools/budget-analyzer can help you separate needs from wants.