Many people who hear the word savings also hear the word restriction in their minds. A restriction on what they can spend money on and a restriction on their finances. This can make savings sound unappealing to almost anyone, but if you look at savings from a different perspective of investing in what you really want the most, saving up money can become more motivating. When told to set up automatic transactions from their income into their savings accounts, a lot of people have the same question of how much they should take out of their income. If you have any questions about bankruptcy-related issues, talk to a Tennessee bankruptcy lawyer.
How Much Should I Put in My Tennessee Savings Account?
The 50/30/20 rule of financial investing says you should put at least 20% of your income into your Tennessee savings account each month while 50% goes to essential expenses and the last 30% goes to whatever you want to spend your money on. This simple rule of thumb has been shown in the past to be an effective way of saving money and avoiding financial pitfalls that can easily hurt people’s finances.
However, this rule of thumb may not work as well for someone who barely makes enough income to afford basic necessities. Depending on your financial situation, you may need to adjust this rule to a level that allows you to afford your living expenses. As long as you can take some percentage of your income and invest this towards your savings account each month, you can still maintain a beneficial financial plan.
For Tennessee college students who are barely making enough money because of odd jobs and college, a savings plan like this may seem pointless. The truth is, even putting a little bit into savings is still better than investing nothing at all and this might end up helping you in the long run.
Will Savings Really Help Me Financially in Tennessee?
You might be wondering whether managing a Tennessee savings account is even worth all the trouble and sacrifice. Savings is not as attractive a word as spending, but savings can produce unforeseen benefits for your future when something unexpected happens and you need the extra money. If you have been investing in savings for years, then you will be prepared but if not, you may have to spend all your money on a car repair or GRE exam.
The United States Securities and Exchange Commission breaks this down with a metaphor. Imagine buying a $2 fast food meal every day for a year. This adds up to $730 that could have been put into your savings if you had bought fast food less often.
Bankruptcy Attorney in Chattanooga, TN
Investing is not always appealing at first. Consider seeking guidance from our lawyers in Chattanooga, Tennessee, and North Georgia if you ever find yourself on the brink of bankruptcy. Call Tom Bible Law today at (423) 424-3116 to speak with a Bankruptcy attorney in Tennessee for a free consultation. Our Tennessee bankruptcy attorneys are located in Chattanooga, Kingsport, and Tullahoma.