Uh Oh. It Might Be Time For A Real Emergency Fund
According toover at Yahoo Finance –
Morgan Stanley told thousands of clients this week that they will not be allowed to withdraw money on their home-equity credit lines…
When things get tight, many people tap into their home-equity credit lines for a bit of extra cash. But, what happens when the bank refuses to let them borrow any more money? It looks like some Morgan Stanley customers are going to find out.
Personally, I don’t rely on credit. Instead, I have cash set aside, in my emergency fund. When life throws me a curve-ball, I’m ready for it.
Those of us who choose to keep a portion of our net worth tied up in cash are often criticised. The critics ask, “Why don’t you put that money to work, instead of just letting it sit there?”. I let it sit there because it provides security for my family. I can get to it whenever I need it. And, I don’t have to rely on a lender to bail me out of trouble.