During this uncertain time of the coronavirus (COVID-19) and economic struggles, many people may be dipping into their emergency funds or starting an emergency fund. There are a few strategies that can help you build up and manage an emergency fund while keeping your finances at a stable level. Doing this can decrease your chances of bankruptcy when financial losses are experienced after an emergency or unexpected event. To find out more, consider reaching out to a Tennessee bankruptcy attorney for more information.
Potential Benefits of an Emergency Fund
You probably already know a few benefits for building and managing an emergency fund, especially during these times. One obvious benefit is preparing for any financial struggles or losses that could hit you in the future. The future cannot always be predicted perfectly and having a safeguard there might help you avoid a financial catastrophe.
Four of the most common ways an emergency fund can help you are with house repairs, during times of unemployment, medical expenses, and unexpected accidents. Hurricanes and other chaotic weather can bring unforeseen damages and destruction to your home. Roof repair costs alone can be expensive, but so can almost any other major house repairs.
Since unemployment has gone slightly up since the coronavirus, now is the best time to start investing in an emergency fund just in case. Medical expenses may not only come with the virus, but they can also come with unexpected accidents. Even a simple bone fracture can cost thousands of dollars without high-quality health insurance.
Speaking of unexpected accidents, there are also car accidents, workplace accidents, and slip and fall accidents that can end up costing you hundreds or thousands of dollars in medical bills and other damages.
Tips for Building a Personal Emergency Fund
At this point, you are probably wondering what the best and fastest way to build an emergency fund is, without any major financial sacrifices. Every major step towards building an emergency fund begins with a plan and small, manageable goals. The goal for an emergency fund is to determine how much money you want to save up for your emergency fund and when you want your savings to be completed.
Emergency fund building strategies involve setting up a system for consistent financial transfers into your savings account and managing this system. Most online bank accounts have an option for setting up automatic reoccurring transfers into your savings. If you cannot find this, be sure to contact your bank. You can keep track of how much is in your savings and how much closer you are to your goal by checking your account every week or twice a month.
Bankruptcy Attorneys in Chattanooga, TN
If you have questions about ways to save up money during difficult times or if you are worried about bankruptcy, contact Tom Bible Law firm for guidance. Our Tennessee bankruptcy lawyers have over 80 years of combined experience helping clients from Chattanooga, Tennessee and into North Georgia with tough financial situations like debt and bankruptcy.
You can contact a Bankruptcy attorney in Tennessee at (423) 424-3116 today or leave a note on our contact page with financial questions. Our offices are located in Chattanooga, Kingsport, and Tullahoma.