Do you get a little nervous when you pull out your debit card or checkbook to make a payment because you’re not sure how much money you have left in your checking account? Taking advantage of online and mobile banking (along with some helpful tips) can alleviate that stress of managing spending.
It’s important to know how much money is in your account so you don’t accidentally spend more than you have and get hit with costly overdraft fees. With online and mobile banking, you can quickly check your balance, see where you spent money, look at your monthly statements and even set alerts to let you know when your balance falls below a certain amount.
Another option we recommend is keeping a dedicated ledger of your balance, spending and deposits – either with simple paper or a software spreadsheet. In addition to providing greater insight into your finances, this is a great method for cutting spending. Starting with your current balance, you’ll want to track the following information in rows and columns:
If you still use paper checks to make payments.
Including ATM withdrawals and any account fees.
Of whom the payments were made to and what they were for.
For all deposits that have been made.
The idea is to be able to deduct payments or add deposits in a way that helps you always know where your account stands. By keeping your own records, you can easily match them to your monthly statement to check for discrepancies or use them to help find where you can reduce your expenses. (Note: If you ever notice any issues between your records and those of your financial institution, contact them right away.)
By regularly balancing your account, you’ll know when it is and isn’t safe to spend money. You’ll also be able to more easily keep track of both your income and your purchases.
When it comes to maintaining a checking account, be sure to know your overdraft protection options and the fees you could face if you draw more money than is actually in your account.
It’s crucial to keep your accounts in good standing, but what exactly does that mean? Let us help walk you through the importance of making payments on time, not exceeding card limits, spending within your means and more!