Did you know that the leading cause for stress is money problems? This doesn’t mean that you don’t have much money, it just means that you are having a tough time with the management of that money. It is because of this that I want to give you several tips on managing your checking account better. The reason I don’t want to talk about a savings account right now is because not everyone has one, but almost everybody has a checking account of some sort.
Tips On Managing Your Checking Account Better
Balance Your Checkbook – The reason why you must balance your checkbook is because you will most likely be making purchases that won’t go through right when you make them. For example, if you buy something from a grocery store the balance usually won’t go down until the next day. Because of this you need to get all your receipts together and make sure the balance that you have is what you really have and not just a temporary balance until the purchases are taken off.
Always Know Your Balance – Have you ever purchased something and realized a little bit later that you didn’t have the money for it? If so, then this is simply because you didn’t know your balance. If your checking account has overdraft protection, then you will likely see charges on your statement every time that your account goes into overdraft. If your account doesn’t have overdraft protection, then your bank will charge you a hefty fee for not having enough money in your account.
Never Use Credit – This is very important because using credit can make it look like you have a bigger account than you actually do. It is because of this that you should always use debit as opposed to credit. Trust me, you will be glad that you listened because it only takes a couple transactions to mess up your account. Keep in mind, however, that some banks will allow you to pay for items even if you don’t have enough money in your account. So, just because your debit card may have been approved, it doesn’t mean you really have enough money.
Avoid Linking Accounts – In the event that you have a savings account, you should never have your checking account and savings accounts linked together. The reason for this is to make sure that you are not pulling money out of your savings account in order to fund purchases. I know this might seem like an odd thing to say, however, a savings account is meant to help you save money. Just keep that in mind.
A checking account that is properly managed makes it very easy to get the financial success that you want and that is why these four tips are so important.