It's
kind of
like taking out the garbage -- if you don't do
it regularly you will
have a mess on your hands. And because there are so
many variables beyond
paper checks, such as ATM transactions and fees, balancing
the checking
account has gotten harder, especially for people with
joint accounts.
A
few ways to help
you keep up with your bottom line: - Review
your
monthly bank statement.
It seems too obvious to mention, but how
many of us have tossed that envelope in a heap of papers
and ignored
it? Stop that. Take a close look and compare the statement
to your check
register.
- Take
advantage
of technology.
You don't have to wait for the monthly statement
to arrive to find out what is going on with your account.
Many banks
have 800 numbers you can call to find out your balance,
what checks
have cleared and the fees you have been charged. Balance
inquiries can
also be made at ATMs, or you may be able to access
account information
over the Internet. The information is usually updated
every business
day, so it's more current than monthly statements.
- Keep
up with
fees.
Do you know what your bank is charging you to write
more than
a certain number of checks, dip below your minimum
balance requirement,
visit the ATM or a teller, place a stop payment or
bounce a check? Reading
the inserts that come with your account statement can
help you stay
informed of changes in bank charges.
- Record
fees
and all transactions immediately.
If you have a debit card, it takes
more vigilance to keep up with what you are spending.
If you aren't
the type to write down every debit card purchase at
the merchant's
counter, keep your receipts in one place. Put them
between the pages
in your check register or in a designated envelope,
and then update
your checkbook every few days. Or, start keeping track
of your transactions
on the back of an ATM receipt and wrap it around your
debit card. Every
time you reach for your card, you will be reminded
to jot down the amount.
- Designate
an
overseer of your joint account.
Somebody needs to do it. If you
share an account, make sure one of you has the responsibility
of keeping
up with it. Try to agree on where you will keep receipts
and what checks
will be written each month.
- Use
cash for
the little stuff.
Balancing your account becomes easier -- especially
with joint accounts -- if you minimize transactions
by taking out enough
cash each week for lunch, gas, the dry cleaner and
other daily expenses.
- Get
checks
with carbon copies.
A good way to keep track if you write a lot
of checks.
- Have
your canceled
checks sent to you in your statement each month.
The opposite of
this is "check safekeeping," which means
the bank keeps copies
of canceled checks but will provide either the original
check or a photocopy
upon request.
- Use
overdraft
protection.
Some banks give you the option of linking your checking
account to another account, such as savings, and will
automatically
make the transfer if you don't have enough money
to cover a transaction.
- Go
with direct
deposit.
Having your paycheck or federal payments such as Social
Security deposited electronically avoids mail delays
and lost or stolen
checks -- all of which can help you avoid bounced checks.
- If
you buy
checks from your bank,
be aware that the cost is automatically charged
to your account, which may leave you coming up short
without realizing
it. And some banks charge up to $24 a box for those
little 3-by-6-inch
pieces of paper. To avoid that, consider using an outside
check or financial
printer where you can usually get a box of checks for $5 or less.
- Round
off your
transactions to the next dollar.
Whenever you write a check or make
a debit card purchase, record it as the next highest
dollar figure instead
of to the penny. For example, if you spent $20.16 at
the dry cleaner,
record it as $21. This can help you avoid overdrafts,
cover account
fees and may even leave you with a few extra dollars
at the end of the
month.
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