123ArticleOnline Logo
Welcome to 123ArticleOnline.com!
ALL >> Investing---Finance >> View Article

How Do Savings Accounts Differ From Emergency Funds?

Profile Picture
By Author: Daniel Stewart
Total Articles: 59
Comment this article
Facebook ShareTwitter ShareGoogle+ ShareTwitter Share

When it comes to savings advice, everyone has heard about savings accounts and emergency funds. But what’s the primary difference between the two? And do you really need both?

What Is A Savings Account?

A savings account is a bank account that you use to stash away money intended for planned expenses. For example, you might be saving money for a down payment on a house, childcare expenses, or to remodel your kitchen. These are all goals that require money to achieve and a savings account can help you get there.

What Is An Emergency Fund?

An emergency fund is also a type of bank account you can use to save money. However, this type of account is designed to help you cover unplanned life changes (hence the name). Examples may include the loss of a job, a death in the family, severe illness, or an economic recession. To avoid severe personal and financial consequences, most financial expert’s savings advice is to have three to six month’s worth of living expenses saved in your emergency fund.

Do I Need Both?

Although no one requires that you have both a savings account ...
... and an emergency fund, doing so can help you prepare for unexpected life challenges and maintain good financial health overall.  Establishing both types of savings accounts will also help you develop discipline when it comes to your spending habits.

In short, no one wants to be stuck in a situation where they can’t pay their rent or buy groceries. Cutting back on unnecessary purchases to regularly contribute to a savings account and an emergency fund is well worth the sacrifice.

Where Can I Find More Savings Advice?

If you’d like to learn more about how you can achieve your financial goals or find wiggle room in your budget to establish an emergency fund, there are many resources available. Get great, personalized savings advicefrom a personal finance app or dive deep into all those personal finance blogs. You can also search the web to find free budgeting worksheets or sign up for a free budgeting webinar hosted by non-profit budgeting experts if that’s more your style. Visit this website for getting savings advice.

Author Resource:-

Daniel Stewart has been helping people with their money management and personal finance with over 15 years’ experience in business finance. You can find his thoughts at budgeting app blog. If you need the best personal finance management app, visit this website.

Total Views: 410Word Count: 421See All articles From Author

Add Comment

Investing / Finance Articles

1. Crypto Bull Run 2025: A Guide To Understanding The Bull Market
Author: Cryptoreach

2. Factors That Influence Motilal Oswal Midcap Fund Performance
Author: kmraheja

3. Who Should Invest In Aditya Birla Sl Medium Term Plan?
Author: kmraheja

4. Best Direct Lender Installment Loans: Fast Cash With Flexible Terms
Author: Ezpaydaycash

5. How To Change A Limited Company Name: A Step-by-step Guide
Author: Thomas Edward

6. Your Money, Recovered: The Essentials Of Taxpayer Refunds
Author: Golden Refund Retrievers LLC

7. How Is Back Pay Taxed? A Guide For Employees In The Uk
Author: Thomas Edward

8. Top Accounting Firms In India: How To Choose The Best For Your Business
Author: DGA Global

9. How Much Should You Pay For A Good Accountant In Surrey?
Author: Regalaccountants

10. A Guide To Bitcoin Wallets: Finding The Perfect Storage For Your Cryptocurrency
Author: James Adorno

11. Us Tax Preparers Uk: The Bottom Line
Author: US Global Tax

12. Top Investment Mistakes To Avoid In 2025
Author: Adyanth Wealth

13. 3 Best Offshore Forex Brokers For Us Citizens - 2025 Guide
Author: Richard Madsen

14. The Evolution Of Family Offices: A New Era Of Wealth Management
Author: Drishti Desai

15. The Art Of Growing Generational Wealth: Family Wealth Management In Depth
Author: Drishti Desai

Login To Account
Login Email:
Password:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: