1. Home
  2. More
  3. Are These 5 Money Mistakes Draining Your Savings Account?
  • Sign up
  • Sign in
Money Talks News
  • Popular
  • Latest
    • Coronavirus
    • Ask Stacy
    • Make
    • Save
    • Borrow
    • Grow
    • Live
    • More
  • Deals
    • Automotive
    • Clothing & Accessories
    • Computers
    • Electronics
    • Everything Else
    • Financial Services
    • Gaming & Toys
    • Health & Beauty
    • Home & Garden
    • Movies, Music & Books
    • Office & Supplies
    • Special Occasion
    • Sports & Fitness
    • Store Events
    • Travel & Entertainment
  • Podcasts
  • Solutions
  • Academy
  • Subscribe to our newsletter
  • Follow us on Facebook
  • Follow us on Twitter
  • Search our site
Seniors holding hands in pool4 Simple Steps for a More Comfortable Retirement
Happy older investor5 Things You Must Do When Your Savings Reach $100,000
10 Amazing Ways to Build Wealth at Any Age10 Amazing Ways to Build Wealth at Any Age
Woman with financial documentsDon’t File Your Taxes Until You Have These 7 Things

Are These 5 Money Mistakes Draining Your Savings Account?

Struggling to keep your savings account funded? It might not just be a problem of limited income or financial emergencies. Here's why.

Advertising Disclosure: When you buy something by clicking links on our site, we may earn a small commission, but it never affects the products or services we recommend.

Allison Martin • January 13, 2015

Share on Facebook Share on Twitter Share by Email Share on Pinterest Printable version available to members PDF version available to members
Image Not Available

We all have good intentions for our money, but life happens and things sometimes take a turn for the worse.

If you’re among the people who abide by a strict budget and have a hefty cushion intact to cover emergencies, kudos to you. If not, you’re likely among the 62 percent of Americans whose finances would crumble if an unexpected expense arose, according to a survey by Bankrate. A bulk of the subjects surveyed had a spending plan, but were living paycheck to paycheck and hadn’t set aside money for an emergency fund.

Perhaps you struggle with the same issue, or find it difficult to maintain the fund as the money departs as quickly as it’s deposited.

Either way, here are some money mistakes that may be wreaking havoc on your savings account:

1. Failing to plan your meals for the week

You spend no more than a few minutes coming up with nutritious meal ideas for your family and race through the grocery aisles filing up the shopping cart without giving the prices much thought.

Following a healthy diet is paramount, but it can wreak havoc on your spending plan if you don’t abide by the golden rules of grocery shopping.

2. Bad beverage habits

If you’re always on the go, preparing your own coffee can be a hassle. Plus, you prefer the taste of Starbucks to give you the spark you need for the day. If your budget is failing you miserably each month and your savings account is picking up the slack, it’s time you tread lightly with the coffee shop visits.

Just one tasty beverage at $4 a day, five days a week, amounts to a whopping $80 per month. And that doesn’t even factor in the sweet treats awaiting you in the display case.

3. Not anticipating deductibles

You desperately need good health and auto insurance, but you can’t afford the high payments. So you opt for a higher deductible. That’s often recommended as a way to lower insurance premiums.

However, it’s potentially hazardous. It could wipe out your savings account in the event you haven’t stashed away enough money to cover the deductible plus meet other emergencies that could arise.

I learned this lesson when I had a surgical procedure. A few minutes after showing up for the pre-op appointment, I was notified I’d need to cough up $1,000 before treatment. Reasoning: I hadn’t met the $500 deductible, and only 80 percent of the costs associated with the procedure were covered by my plan. Fortunately, we had a fund for medical bills so I could make the payment, but I hadn’t anticipated that I’d have to pay out-of-pocket before the procedure.

4. Ignoring your spending plan

Do you pay your bills immediately after funds are deposited into your bank account and then spend the rest, rather than sticking to your budget? If so, how do you ever expect to build your cushion?

Or what happens when a financial emergency arises, and you’re forced to dip into the small emergency fund you do have? Will you be able to replenish it in the coming months?

My suggestion: Make cuts to variable expenses and allocate freed-up funds to your savings account. Here’s how.

5. Tossing bank statements as soon as you receive them

It’s amazing how powerful bank and credit card statements can be. At least they are for me, because statements serve as a reality check when I haven’t been playing by the money rules set forth in our household. (On a few occasions, checking bank statements has also saved me from identity thieves because I detected small charges I hadn’t made).

Thinking you know what you’ve spent and actually knowing are two different things. If you’re in the latter group, the chances of you living within your means and not emptying your savings account are greater.

I’m not suggesting you deprive yourself of life’s pleasures, but it’s up to you to take care of your money. Otherwise, it won’t take care of you in the times you need it most.

What changes have you made to turn a new leaf and boost your savings account? Let us know in the comments below or on our Facebook page.

  Like Article   Add a Comment

Sign up for our free newsletter!

Simple ways to make, save, and grow your money daily:

  happy subscribers    
MTN Podcasts

Every week our podcasts bring you lively money discussions that will give you a few laughs along with advice that will make you richer.

Money with Stacy Johnson

Listen/Subscribe

Read Next

Some of our favorite stories for you to read next.

Women cooking on a stovetop
Shoppers Adore This Major Home Appliance Brand
Sign up for our free newsletter!

Join our many free newsletter subscribers building wealth and destroying debt:

Popular Topics
  • Retirement Investment
  • Surveys for Money
  • How to Make Money Online
  • Emergency Stockpile
  • Free Movie Streaming
  • Senior Discounts
Connect
  • Support & FAQs
  • Memberships
  • About
  • Contact
  • Careers
  • Accessibility Statement
Media
  • Advertise
  • Television
  • Where We Air
  • Scripts
  • Sitemap
Legal
  • Terms
  • Privacy
  • Cookies
Editorial
  • Fact-Checking Policy
  • Ethics Policy
  • Corrections Policy
  • Ownership & Funding Info

Do Not Sell My Personal Information

© 2023 Money Talks News. All Rights Reserved.
‭1 (833) 669-8557 | 1732 1st Ave #26661, New York, NY 10128

Advertising Disclosure: This site may be compensated in exchange for featured placement of certain sponsored products and services, or your clicking on links posted on this website.

View This Page Without Ads

Help us produce more money-saving articles and videos by subscribing to a membership.

Get Started

Help us produce more money-saving articles and videos by subscribing to a membership.

Add a Comment

Our Policy: We welcome relevant and respectful comments in order to foster healthy and informative discussions. All other comments may be removed. Comments with links are automatically held for moderation.

Sign up for our free newsletter!

Join our happy subscribers and sign up for our free newsletter! You'll get:

  • Tips and advice from our expert money reporters. (Our average experience is 18 years!)
  • Unexpected ways to make more and spend less, delivered to you daily.
  • The best deals and coupons to save on everything you buy.
  • Free copies of our eBooks '208 Ways to Save Money Every Day' and '108 Easy Ways to Earn Extra Cash', together a $29 value!