10 Things Successful People Do Avoid Losing Money

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There is a good feeling when you look at your bank or brokerage accounts and see money sitting there. Unless, of course, your bank account is empty, in which case the only feeling you get is a sense of impending doom. Here are some great tips from a personal finance forum to avoid that punch in the gut.

1. Discipline is Key

Protect your hard-earned money by being disciplined with your spending. You have to work at it. It’s like training for a marathon, but instead of running, you’re just not spending money. As per an individual’s recommendation, I found Caleb Hammer’s YouTube channel to be a helpful guide to becoming disciplined and strategic with finances.

2. Question Each Purchase

To avoid impulsive purchases, be mindful of your spending. Before making any purchase, question the necessity of it and take some time before making a decision.

This way, you can decide if the purchase is necessary or if you can go without it. It also makes it much easier to ignore the “suggested for you” section on Amazon. And yes, that third Roomba probably isn’t worth it.

3. Automate the Movement of Money

An individual suggested that automating the movement of your money into separate savings and investment accounts helps you stay on track with your savings goals. You will be more likely to remember or skip deposits when it’s done automatically. You will also be less likely to give in to your spending urges.

4. Allocate Money Into Specific Accounts

As soon as I get money in my account, I allocate it to several specific bills/savings/expenses/ energy accounts, etc. This way, I know exactly how much I have left to spend on discretionary items after taking care of your necessary expenses. Remember which account is for what, or you’ll end up paying the water bill with your vacation savings!

5. Have a Savings Goal in Mind

According to a user, if you are saving with a purpose, any money you take away from a particular savings goal moves you farther away from something you want. So, every time you buy a $5 latte, you’re telling your future self that you don’t care about them instead of putting that money towards your retirement fund.

6. Having Different Accounts for Different Savings Goals

Someone suggested that having a specific savings goal in mind and creating a separate account for it will help you stay focused and motivated. Savings for long-term goals go into investment accounts. Savings for shorter-term purposes go into savings accounts.

This makes it explicit when you are taking money away from some future goal to buy a different thing at the moment.

7. Treat Saving Money Like a Mandatory Bill

You can set up automatic transfers to a high-yield savings account. An individual advocated prioritizing saving by treating it like a bill you must pay. Because if there’s anything that makes saving money more enjoyable, it’s pretending like you’re paying a bill.

8. Open a Separate Savings Account at a Different Bank

To make it easier to save money, open a different savings account at a bank other than your primary one. This will help you disassociate the funds from your day-to-day finances and make saving easier.

A user suggested that you can also set up automated ACH transfers from your checking account into savings or investment accounts that execute after each paycheck. Because if you have to rely on yourself to remember to save money, you’re probably already doomed.

9. Set Up Weekly Transfers

Set up weekly automatic transfers to your savings and emergency funds to make it easier to save money. This way, you will be sure to save regularly and be prepared for unexpected expenses.

10. Have an Emergency Fund

One user suggested having an emergency fund in addition to savings for specific goals is essential. This way, you will be prepared for unexpected expenses and won’t have to dip into your long-term savings to cover them.