Nowadays people have greater access to their financial records than ever before, whether through mobile apps, online banking or text banking. Yet as I learned through internet research, many people still struggle to keep track of their checking account balance and it makes since why. It seems silly to have to record your spending in a paper checkbook or on an Excel spreadsheet when you can check your funds virtually anywhere and at anytime, but it’s important, probably more now than ever, to keep track of your accounts and their balances.
Why? Here are a few good reasons:
· Balancing your checkbook verifies that your records match the financial institution’s records.
· The financial institution could make mistakes. It’s important to double-check all work, even your own!
· If you make a mistake or forget to post a transaction in your register, you may start bouncing checks and incurring fees.
· If there is a problem and you already balance your checkbook weekly or monthly, you won't need to wade through months of transactions to figure it out.
· Even if you use your debit card for a purchase, the first amount that is held on your account may not be the full amount. Many tips aren’t added to the purchase price until the merchant settlement process is finished, which may not occur until a few days after the pending item first appears. You may then be caught with less in your account than your online balance shows.
In order to keep your balance in check, follow these simple steps:
1. Record your purchases and withdrawals even when using your debit card.
2. Record deposits
3. Calculate your balance
Need help starting the process? Try http://quicken.intuit.com/personal-finance-software/mint-online-money-management.jsp. It’s a personal finance site that helps you organize your money and stay on top of your cash flow. By using a program like Quicken and self-balancing your transactions, you can triple-check your accounts’ balance against the figures in your online or mobile financial records.
No comments:
Post a Comment