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One of the benefits of using the HELOC as an emergency fund was that there was no easily identifiable big cash balance sitting around. This meant available funds were invested productively. This meant that temptation to buy big ticket itmes was reduced since it would require selling something or drawing on the HELOC. A useful extra measure of will power to keep LBYM.
So if I change my thinking about HELOC so it's only one source of energency funds among several, then I'll also need to add a money market or some other cash savings. If I cannot count on the HELOC for cash under some common emergency situations, such as job loss, then I guess I better start building a more conventional cash emergency fund. Ooohhh, those fast new computers sure look attractive.
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