4 Cash Flow Mistakes Making You Feel Broke

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If you’re working hard, but it feels like your money just isn’t adding up — it’s not just in your head.

Maybe you’re constantly wondering where it all went or feeling like you’re always one step away from being broke. According to the American Psychological Association’s Stress in America Survey, money is a significant stressor for 77% of Americans aged 35 to 44.

The thing is, it might not be about how much you’re earning but rather how you’re managing it. 

“I’ve seen this happen countless times in my work with clients. Someone’s making good money but somehow feels broke all the time. The frustrating part is that it’s usually due to simple cash flow mistakes that are super easy to fix,” said Andrew Lokenauth, money expert and owner of BeFluentInFinance.

Here are some common cash flow mistakes that could be silently draining your bank account. 

You’re Keeping Too Much Money In Investments

Last month, Lokenauth worked with a client who was making more than $150,000 but constantly stressed about money. 

“The thing is, she was keeping way too much money in investments and not enough in her checking account,” he said.

He said this is a classic mistake he sees all the time — having a net worth of $500,000 but sweating about a $200 dinner bill.

Here’s what he recommends works best: Keep about 2-3 months of expenses in a checking account. He personally keeps around $15,000. 

That’s enough to handle regular bills without constantly watching your balance. But here’s the secret most people miss — you need a separate account for irregular expenses too. 

Those random car repairs or surprise medical bills won’t feel so devastating when you’ve got a dedicated fund.

“I made this mistake myself early in my career. Had great investments but kept overdrafting my checking account — embarrassing, I know.”

He said the worst part was constantly moving money around between accounts, which accounted for a big waste of mental energy.

You’re Being Too Aggressive With Investing

Another huge issue Lokenauth sees is people trying to be too aggressive with investing. 

“Sure, I love seeing money grow in the market, but not at the expense of day-to-day peace of mind.” 

He’s found that keeping about six months of expenses in a high-yield savings account, currently getting around 4-5% for an APY, hits the sweet spot between growth and accessibility.

You’re Behind On Expenses

Another tricky cash flow issue Lokenauth has noticed: the credit card float trap. 

“So many of my clients think they’re doing fine because they pay off their cards each month. But they’re actually living on next month’s paycheck without realizing it.” 

For this reason, he always recommends getting one month ahead on expenses as a total game-changer for his clients.

The Automated Savings Trap Is Another Sneaky One

According to Lokenauth, people set up auto-transfers to savings or investment accounts, which sounds smart, but they transfer too much. 

Then, they end up pulling money back when unexpected expenses hit, feeling defeated. 

“I’ve learned it’s better to start smaller and gradually increase savings as you get comfortable with your cash flow.”

Here’s what worked for him: he created a “stupid stuff fund” — about $300 per month for completely random expenses. 

“Because, let’s face it, life happens. Having this buffer means I never feel guilty about occasional splurges or surprised by those random Amazon purchases I forgot about.”

Lokenauth said it’s not about how much money you have — it’s about how you structure your cash flow. 

He’s witnessed people making $50,000 manage their money better than some making $200,000. 

The key is finding the right balance between having enough liquid cash and putting your money to work.

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