When people come to me for financial advice, they usually want to know what to do. But just as often, I find myself explaining what not to do — especially when it comes to saving money.

Saving isn’t just about discipline. It’s about having the right systems, the right mindset, and the right financial structure. As a CPA, I’ve seen dozens of seemingly responsible folks accidentally sabotage their long-term goals by making very avoidable savings mistakes. The good news? With a few simple adjustments, you can get back on track — or avoid this type of detour altogether.

Here are the five most common savings mistakes I see (even among higher earners) — and exactly what you can do how to fix them.

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1. Treating Savings Like a Leftover

This is the #1 culprit — and the most damaging. Too many people approach saving like this: “I’ll put aside whatever I have left at the end of the month.” But the truth is, if you wait until the end of the month, there’s never anything left.

CPA Advice: Reverse the formula. Save first, spend second. This is the core of a method called “paying yourself first”— and it’s not just a catchy phrase. It’s the backbone of every solid financial plan. Once you truly understand this idea, saving gets a whole lot more successful.

✅ Fix it: Set up an automatic transfer from checking to savings on payday. Make it predictable, like a recurring bill. Even $50 every paycheck adds up faster than you think.

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2. Using One Savings Account for Everything

Lumping all your savings into one pot is a recipe for confusion — and unintentional overspending. Your emergency fund shouldn’t be mixed in with your travel fund, or the money you’re saving for a new car.

When your savings lack purpose, it becomes easier to justify raiding the account “just this one time”.

CPA Advice: Every dollar in savings should have a clear job.

✅ Fix it: Open multiple savings buckets — either separate high-yield accounts or digital “sub-savings” within your bank. Label them clearly:

• “Emergency Fund”

• “Travel 2025”

• “Car Maintenance”

• “Taxes” (if you’re self-employed)

This is called goal-based saving, and it works.

💡 Pro tip: I’ve had great success using SoFi Bank for this purpose. You can have a High Yield Savings Account and then setup different “Vaults” to track money for different purposes and name them accordingly. I keep one for Emergency Funds, one to save up for Property Tax Bills every 6 months, etc. And best of all, the accounts are FREE with no monthly charges.

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3. Keeping Savings in a Regular Checking Account

I’ve had clients tell me proudly that they’ve built up $5,000 in savings — only to reveal it’s sitting in their checking account. That’s not saving. That’s more like temptation with a routing number.

Not only are you more likely to spend it, but you’re also missing out on free interest you could be earning (trust me, it adds up over time).

CPA Advice: Your savings should be out of sight, out of mind, and earning at least 4% APY (as of mid-2025).

✅ Fix it: Open a high-yield savings account at an FDIC-insured online bank. No monthly fees. No minimum balance. No excuses. And it honestly only takes 5 minutes to get started and sign up online these days.

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4. Failing to Adjust Savings Over Time

A savings plan that worked when you were making $40K might not be enough when you’re making $75K. Yet I can attest that people rarely revisit their savings rate. Life evolves — and your savings strategy should, too.

CPA Advice: Every raise, bonus, or major life change should trigger a reassessment of how much you’re saving and where it’s going. 

✅ Fix it: Build in a quarterly “money check-in” — just 15 minutes to evaluate your income, savings goals, and contribution amounts. Better yet, automatically increase your savings rate by 1% annually if your income is going up. If you do it when you the raise kicks in, you’ll never even miss the extra that gets diverted to savings!

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5. Saving Without a Purpose (Or With No Timeline)

If your only goal is to “save more,” you’ll end up saving less. Vague goals don’t drive behavior — specific ones do.

“I want to save $5,000 for emergencies by December 1st” is 10x more powerful than “I should save more this year.”

CPA Advice: Treat your savings goals like project milestones — not vague wishes.

✅ Fix it: For each savings goal, ask:

• What’s the amount?

• What’s the purpose?

• What’s the deadline?

• What’s my monthly contribution?

Then track it to keep yourself accountable. Remember, “progress equals momentum”.

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Final Word: Start Where You Are

Here’s the truth most financial “gurus” won’t tell you: you don’t need to do it perfectly. You just need to stop doing it accidentally. I like to think of it as “Progress NOT Perfection!!!”

Avoiding these five common savings mistakes can put you years ahead of where most people are financially. It’s not about being rich — it’s about being intentional.

Whether you’re saving $25 a week or $500 a month, the same rules apply:

Automate it. Assign it a purpose. And don’t touch it unless you absolutely have to.

If you do that consistently, you’ll build more than savings — you’ll build real financial security.