That could be a problem if you need the money in an emergency, decide to invest it in something else, or want to retire early.

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These kinds of goals assuming a time frame of five years or less are suitably held in cash or equivalents in an account separate from emergency money.

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In any case, the riskier your income situation, the more important it is to have money set aside to cover your necessary expenses in case of an emergency.

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Meanwhile, Strauss is urging spectators at Edgbaston to donate money to an emergency fund for those affected by the floods in Pakistan.

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Using a savings account is great for funds you might need in an emergency, because you can access the money quickly without worrying about selling an asset.

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And in an emergency gold is more likely to hold its value than paper money.

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But how many people have that kind of money sitting in a savings account that they could use to cover the cost of healthcare in an emergency?

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For example, the ECB has a deposit facility that pays interest to banks, an emergency marginal lending facility for overnight borrowing and a weekly refinancing operation in which it lends money to banks.

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