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Only $50 in Your Bank Account? You’re Not Alone
Our bank accounts are constantly fluctuating as we make purchases, pay bills, and receive our paychecks. But sometimes, things don’t go as planned, and you may find yourself checking your bank account to see $50 or less.
While seeing a low bank account balance can be worrisome, it’s fixable with some precautions and financial planning.
Americans are stressed over money
It’s no secret that many of us struggle to make ends meet due to things such as inflation or stagnant wages. A survey from Achieve found that about 21% of people feel like they are strapped for money on a weekly or monthly basis. What’s more, 42% of people admit that their bank account goes below $50 at least once a month.
In addition to financial trouble, a low bank account balance can lead to other issues like overdraft fees, missed bill payments, debt, and extreme anxiety.
What's causing bank accounts to dip under $50?
While the reasons for low bank account balances can vary by person, there are a few general reasons many people experience this.
- Medical debt. Urgent care visits, surgeries, procedures, and specialist appointments are expensive, and insurance doesn’t always cover the cost. If a medical issue arises, your bank account can quickly plummet without a payment plan.
- Job loss. Losing your job is a massive hardship. Unemployment benefits can be a fraction of what you earned, and they often run out before finding new employment, causing you to use every dollar for necessities and paying bills.
- Car repairs. Unexpected car trouble can put a big dent in your bank account. Accidents leading to major repairs can cost thousands between the parts themselves and labor.
Other problems that can cause bank accounts to dip below $50 include:
- Late and overdraft fees
- Home repairs
- Death in the family
- Caring for an adult family member
- Legal problems
- Becoming a crime victim
- Divorce and separation
- Eviction and foreclosure
- Natural disasters
What to do if you have a low bank account balance
1. Check your bank balance
The first thing on your to-do list when you see your balance at or below $50 is to look at your transactions. It might be helpful to go to your bank’s website instead of using the app, as bank apps don’t always give all the details about your transactions.
Scroll through your account and pinpoint the reason your balance is so low. It’s possible that you paid a bill twice, were overcharged for a purchase, or mistakenly used debit instead of credit when making a purchase.
2. Check if you were hacked
While you’re looking through your account, you’ll want to ensure all the transactions are yours. Fraud is unfortunately common, especially since a lot of information is exchanged online.
If you find some charges that aren’t yours in your account, it’s time to contact your bank. Go to your local branch in person or call them to freeze your debit card and file disputes for fraudulent charges. Just keep in mind that it can sometimes take weeks to be reimbursed, so be patient.
3. Review upcoming bills
Do you have your bills on autopay? If you do, check when they’re scheduled to come out. Forgetting autopay can be the reason for your low bank account balance, as you may have forgotten about a bill that gets withdrawn.
If you’re in the midst of figuring out your balance, you may want to turn off autopay. Your next bill could overdraw your account if you only have $50 available, leading to more fees and penalties.
4. Reduce your spending
When your bank account balance is looking a little low, it’s time to put a temporary halt on your spending. If you weren’t hacked, you’ll need to assess your purchasing habits and start cutting out unnecessary expenses like:
- Restaurant meals
- Weekend shopping sprees
- Daily coffee shop visits
- Streaming services
- Gaming subscriptions
Saving money where you can will aid in keeping your bank account balance stable.
5. Make a budget
Along with reducing your spending, it might be time to create a budget if you don’t already have one. Keeping track of how much money comes in and out of your account can help prevent your balance from dipping below $50. It’ll also help you recognize something like fraud more quickly.
➢RELATED: Where to Get a $100 Loan Fast
Options to get cash quickly
If you’re feeling a little nervous with your low bank account balance, you might want to opt for some quick ways to get money.
Get a loan
Applying for a loan is one of the quickest ways to get the money you need. Cash Advance lenders like Advance America could approve your application and get your funds to you as soon as the same day — and many don’t require good credit!
Some other loan types to consider include:
Sell your things
When was the last time you cleaned out your closets, basement, or attic? Hosting a garage or yard sale or posting your items for sale online can bring in some extra money rather fast.
Get a side gig
Signing yourself up for a money-making side gig is quite easy, especially now that many applications are available online. Dog walking, cleaning houses, repair work, and plenty of remote opportunities like blog writing and data entry are available. Side gigs make excellent options for extra income.
Ask for help
Your family and friends might be willing to help you out if you ask. Meet with them to agree on the loan amount and ensure you create some kind of contract to keep everyone on the same page. The repayment details need to be clear, and all parties need to agree.
Get an advance from your employer
Sometimes, your employer may allow you to ask for an advance. With this, you can receive a portion of your next paycheck a little early. Remember that the amount you borrow will come out of your future paychecks, so be sure to account for it in your budget.
Tips to build an emergency fund
Try not to let a low bank account balance be a constant occurrence. While this may be easier said than done, an emergency fund is the perfect way to prevent your account from dipping.
An emergency fund reserves money for unexpected expenses like medical bills, car and home repairs, and job loss. Building an emergency fund can be tricky when you’re living paycheck to paycheck, but you can start by:
- Assessing the amount you need (aim for enough to cover three to six months of your income).
- Sticking to a monthly budget that prioritizes saving.
- Cutting back on expenses.
- Paying down your debt.
- Using any available employer matches.
Over time, your fund will increase, and you’ll have money to fall back instead of dipping into your main bank account.
Notice: Information provided in this article is for informational purposes only. Consult your attorney or financial advisor about your financial circumstances.
About the author
Ashley Masiello is an experienced copywriter and editor who has crafted engaging content for numerous websites and continues to do so with Advance America. She likes to combine her creative personality with clarity to make concepts easy and fun to read.
