How Much Should I Keep in My Emergency Savings?

How Much Should I Keep in My Emergency Savings?

Many people have heard that you should save at least six months of your income in your savings account. This may not work for everyone because different people make different amounts of money. Those who make less money may need to put more into their savings to successfully survive emergencies. If your financial situation has brought you to bankruptcy, then try asking a Tullahoma bankruptcy lawyer for guidance.


Most people are told to save at least six months of income to survive a financial emergency. However, when it comes to planning emergency savings, this depends on any given person’s life circumstances. How much money someone makes and what financial burdens someone is dealing with are some examples that impact this.

People who make a lot of money may not have to put as much money into savings as other people. They may be able to cover a financial emergency with a month’s worth of income. Those who make a moderate amount of money may want to work on saving six months of income. Whereas those making less money may face financial emergencies only if they save a year’s worth of income.

Others who may want to save more than six months of income are those with:

  • Financial burdens
  • Variable income
  • Commission jobs
  • Unstable employment

Reoccurring financial losses from constant car repairs and debt may make it hard to survive a financial emergency. This means you may have to save up to eight or ten months of income to cover these reoccurring expenses and the emergency.


Many people worry about two things when it comes to emergency savings, building up the savings and maintaining this. Building up savings is easy if you know the right tricks. One trick to building emergency savings is to save your tax refund. As tempting as it is to spend your tax refund, putting this into savings can build your savings account up much faster.

Then you can do the math and subtract this from the number of months of income you want to save. You may reach your savings goal in half the time it would take to save based on your income. At the very least, saving half of or a portion of your tax refund can also give you a head start.

In terms of managing emergency savings, this takes patience and perseverance. You have to be willing to regularly check in on your bank account and savings account. This is crucial for making sure you are progressing towards your savings goal. Set up an automatic deposit from your income to your savings account and use a portion that works for you.


Dealing with a bankruptcy on top of severe financial stress can be overwhelming. Call us today at Tom Bible Law by dialing (423) 690-7712 to figure out what your financial obstacles are. Our legal team of Tennessee bankruptcy attorneys can figure out the best options available given your unique situation. You can find us throughout the Tennessee cities of Chattanooga and Tullahoma.