Even safe havens can be risky during a credit crisis.

The high-profile failure of Indy Mac bank in July 2008 resulted in some depositors receiving an initial payment of just 50 cents on the dollar for money they had at the bank that exceeded Federal Deposit Insurance Corp. (FDIC) coverage.

Another jolt came in September 2008 when the Reserve, a money market mutual fund company, announced that its Reserve Primary Fund “broke the buck.” Money market mutual funds are designed to always maintain a fixed $1 value per share. Their sole purpose is to provide safe savings through a low yield. But one of the Reserve Primary Fund’s investments was a Lehman Brothers security. When Lehman went under, so did the value of that security.

As I write this in November 2008, it is still not clear how much Reserve shareholders will receive when the fund is liquidated; it could be 97 cents on the dollar. Another disturbing development is that shareholders of 15 money market funds managed by the Reserve have had their accounts frozen for more than a month—meaning they have no access to money that is supposed to be in the most liquid of investment accounts. The Reserve’s problems triggered massive redemption requests from other money fund investors at other companies; in September, the Department of the Treasury had to step in and offer a temporary insurance fund to stop an all-out run on money market funds (more on this below). The timing of the savings scare couldn’t be worse. Never has having an emergency savings account be n more important.

The weak economy increases the odds that we will se rising playoffs in 2009; that’s why I want you to push as hard as you can to find a way to set aside at least eight months of living expenses in an insured savings account. As I explained in “Action Plan: Credit,” if you’ve slid by in the past thinking you could always tap your credit card in a pinch, that’s not going to work this year. Credit lines are being reduced, and even if you have be n spared so far, I have news for you: If you get laid of and start using your credit card more, you better believe the credit card company is going to think about cutting your credit limit the minute they catch wind that your unpaid balance keeps growing. Nor is your home equity line of credit (HELOC) a viable “emergency” fund anymore. If you still have an open HELOC, consider yourself lucky. With falling home prices eroding equity throughout 2007 and 2008, banks have be n closing down HELOC accounts. And HELOC closures may continue in 2009 as many housing markets continue to struggle. Bottom line: In 2009, everyone must have a safe standard savings account that will cover eight months of living costs. Rely on credit lines and HELOCs and you put your family at extreme risk.