For some things, only cash will do

Maybe your insurance company will behave as in the ads. But sometimes they don't.

Maybe your emergency medical treatment will be covered by the NHS. Well it will be, eventually.

Maybe your children will never get into trouble.

Whatever, every family should have a cash cushion for emergencies.

Why not just borrow when you need it?

In other words, arrange a credit line and keep your cash cushion small.

Actually this is a good question. But we don’t know anyone who actually does this, apart from the very experienced and comfortably off. There are no doubt practical difficulties, and it would be just one more thing for you to manage.

And make sure your access to debt is secure. Sometimes credit can just dry up. Often when you need it most - as Northern Rock discovered.