Almost everyone tries to keep at least their own personal amount of money in the bank at all times, whether this is for emergencies or personal comfort, but not everyone realizes how much money they should have in their bank at all times. When uncertain financial times happen, it is important to be prepared for things like job loss and fewer job opportunities. One way of doing this is saving up enough money to cover you until you find another job. However, if your situation has become dire and you are coming close to bankruptcy, feel free to ask a Tennessee bankruptcy attorney for help.
Minimal Amount of Money You Should Have in Your Tennessee Bank
Having a minimal amount of money in your bank account at all times is not only important for emergencies but can also be a lifesaver when you find yourself employed for several months. Some people call this savings strategy a Tennessee emergency fund, while others call it not letting your bank account dip below a certain amount of money. What this does is protect you from missing bills and falling into bankruptcy while you search for a new job.
Financial advisors recommend saving up at least six months’ of your personal living expenses and maintaining this amount on your bank consistently over time. This means not spending money if your emergency fund will decrease below a certain amount. The amount you need to save up really depends on you and your unique financial situation.
Grab a notepad or your phone and add up all of your bills for this month. This could mean rent, electricity, phone, insurance, car, and internet bills. Once you have the total, multiply the total by six and you will have the amount of money you should have saved up to cover six months’ worth of bills when you have no income coming in.
Tips for Building Your Tennessee Savings Account
Building a Tennessee savings account for six months’ worth of bills sounds easy at first, but many people can find this challenging when they have multiple financial obligations and distractions. The temptation to spend money online can be stronger now than ever, considering many people are stuck at home due to the coronavirus.
Set a minimal amount of entertainment money you are allowed to spend each month or do not let yourself spend any more money until you have your emergency fund built up to a certain amount. The reward will be allowing yourself to buy something you have been wanting, but until you have achieved the emergency fun you want.
Put extra money in your savings and set up automatic transactions into your savings from your monthly income.
Bankruptcy Attorney in Chattanooga, TN
Keeping your Tennessee personal finances in order is not always easy. Consider seeking help from our lawyers in Chattanooga, Tennessee and North Georgia if you are falling into bankruptcy. Call Tom Bible Law at (423) 424-3116 to talk to a Bankruptcy lawyer in Tennessee for a free consultation today. Our Tennessee bankruptcy lawyers are located in Chattanooga, Kingsport, and Tullahoma.