Central asset accounts present another alternative. Essentially, these accounts are brokerage accounts that work in conjunction with money market funds that invest in investment grade short-term corporate, government or municipal bonds. Money that is not otherwise invested and interest and dividends earned on the securities held in your account are automatically swept into the fund or funds of your choice on a regular basis. This way, your money is virtually always working for you. You can access funds in your account by writing checks, using a debit or credit card, or obtaining funds through cash machines.
Many people do rely on credit in times of crisis.
Some people count on long-term investment gains in hopes that big returns will cover emergency expenses. If you're forced to sell an investment at a loss, however, you may find yourself in worse shape than before. Automatic Saving Is Easy A systematic savings plan can be the best way to accumulate your emergency funds. The easiest way to save regularly is through a payroll deduction plan at work, or the automatic transfer of funds from a bank account to an investment of your choice. Both of these mechanisms make saving an easy habit to develop.