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What Are the Differences Between an Emergency Fund and Savings Account?

Since emergency funds are usually put into a savings account, many people wonder if there are any differences between saving up money for an emergency fund versus saving money in a savings account. For some people, there are no differences, but there can be if you want to put funds into both. You might be wanting to save money for emergencies while also saving money for long-term financial goals. Understanding the differences can help you accomplish these goals. If you ever have any financial concerns or questions about bankruptcy, be sure to reach out to a Tennessee bankruptcy lawyer for assistance.

Building an Emergency Fund in Tennessee

There are several methods you can use to effectively build up an emergency fund in Tennessee for potential disasters in your future. Emergency funds tend to involve savings of up to $10,000 or more. This money can be placed into your savings account or kept at home, depending on your What Are the Differences Between an Emergency Fund and Savings Account?personal preferences.

You might be thinking $10,000 is a lot of money for an emergency fund that is never spent except for the off-chance of an actual emergency. If you find yourself struggling to save up this much money, you have the option of saving up for a rainy day fund instead. Rainy day funds cover less serious emergencies like damaged vehicles or one-time emergency room visits and usually involve $2,500 total in savings.

When it comes to saving up for either of these types of funds, there are several tips that can help:

  • Place a portion of or all of your pay raises and bonuses in your emergency fund
  • Apply a portion of your tax refund into your savings account
  • Set up an automatic deposit through your bank to your emergency fund every week or once a month of $50 or more, depending on your income 

Savings Account Tips in Tennessee 

Methods for building up your savings account in Mississippi depend on your spending habits, what financial sacrifices you are willing to make, and your level of income. One way to avoid the temptation to use money from your savings is to set up your savings account with a different bank than where you have your checking account set up.

In terms of how much money is helpful to have in savings, most financial experts advise people to save up three months’ worth of income. However, this depends on what your long-term financial goals are. You may be putting money into savings for a car or house. The process of putting money into your savings is made easier by setting up automatic transfers each week or month and by creating a financial plan you agree with.

Bankruptcy Lawyers in Chattanooga, Tennessee

Saving up money can be one of the most challenging habits to get into. Reach out to our team of lawyers in Chattanooga, Tennessee and North Georgia if you are in a tricky financial situation. Contact Tom Bible Law to talk to a Bankruptcy attorney in Tennessee at (423) 424-3116 for a free consultation today. Our bankruptcy attorneys are located in Chattanooga, Kingsport, and Tullahoma.

Tags: Building an Emergency Fund in Tennessee, Savings Account Tips in Tennessee, Tennessee bankruptcy lawyer, What Are the Differences Between an Emergency Fund and Savings Account?

Contact Tom Bible Law

If you are seeking effective debt relief, we are here for you. Contact us today online or by telephone at 423.933.3627 to arrange a consultation with a knowledgeable Hamilton County bankruptcy law attorney. We offer free initial consultations, affordable rates and flexible payment plans. Our Tennessee bankruptcy lawyers are committed to helping you achieve your debt relief goals.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.

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423.424.3116
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Chattanooga, TN 37421

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Tom Bible Law serves clients in East Tennessee, Middle Tennessee and North West Georgia including Hamilton County, Bradley County, Polk County, Marion County, Sequatchie County, Rhea County, McMinn County, Grundy County, Van Buren County, Sullivan County, Washington County, Johnson County, Hawkins County, Coffee County, Cocke County, Bedford County, Franklin County, Lincoln County, Warren County, Moore County, Hamblen County, Greene County, Hancock County, Unicoi County and Carter County, in Tennessee, and Catoosa County, Dade County, Murray County, Walker County, and Whitfield County in Georgia. We represent people from Chattanooga, Cleveland, Dayton, Red Bank, East Ridge, East Brainerd, Harrison, Athens, South Pittsburg, Tullahoma, Manchester, Fayetteville, Shelbyville, Kingsport, Bristol, Johnson City, Fort Oglethorpe, Chickamauga, Dalton, and most surrounding areas.

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  • Home
  • Firm Overview
  • Attorneys
  • Bankruptcy
    • The Bankruptcy Process
    • Chapter 7
    • Chapter 13
    • Chapter 11
    • Chapter 12
    • Credit Card Debt
    • Medical Debt
    • Tax Debt
    • Keeping Assets in Bankruptcy
    • Stop Creditor Harassment
    • Stop Repossession
    • Stop Foreclosure
    • Stop Wage Garnishment
    • Emergency Filings
    • Rebuilding Credit After Bankruptcy
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