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.

What do you mean by cash?

…….any money you can access quickly and reliably.

How quick and how reliable? That's for you to decide. Some like to take a few chances with speed or reliability to earn a bit of extra interest. Some don't. It's a personal thing - like so much in family finances.

How much cushion?

The standard recommendation used to be 'at least three months outgoings'. In these more volatile times six months could be a recommended minimum. But.....

The right answer is 'whatever you feel comfortable with'. How stable is your income? How secure is your job? How flexible are your living standards? Do you have dependents and what are their expectations? Are you a risk-taker? What does your partner feel?

Disasters

For some events no amount of cash will cover it. Your house burning down? Loss of earning power? If you want to survive you must buy insurance.

What to insure and for how much is a necessary part of your money management discussion process.Your personality may tempt you to chance it. It’s your choice.

Why not just borrow when you need it?

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

It might work if you know what you are doing. But it has to be managed, and do you need that in your life? For Easy Money, don’t.