Why You Should Balance Your Checkbook
If you don’t have a monthly budget, it is crucial to your financial future to get one and follow it! If you do have a monthly budget, one way to help you stick to your plan is to balance your checkbook regularly. Regularly means writing down every purchase you make, either by a debit card tied to your checking account or by an actual written check. The only way to know if you are spending within your budget is to keep track of how much money comes in, and how much money you spend.
Balancing a checkbook can be difficult, especially if you misplace receipts or forget to record purchases. But, after a little practice, you can become proficient at keeping track of your debits and credits and will know exactly how much money you have at any given time. When you know what is in your account, you will know if there is any extra for family activities, or for savings. The following components are required to accurately balance a checkbook:
● Current balance.
● An itemization of your spending.
● Inclusion of any bank charges, like a monthly maintenance fee.
Be sure to include any interest earned when figuring the bottom line. With paperless statements the norm, you may have to resort to an online calculator to balance your checkbook. But, if you do receive a paper statement, most contain a calculation chart to help you get to your balance. Without knowing how much money you have to spend, it is easy to go over what you have in the bank. This can lead to insufficient bank charges, which can quickly spiral out of control. The end result may be that you find yourself being unable to make your monthly payments. Good financial planning starts with a budget, and a balanced checkbook. The benefits are that you avoid financial distress, and may even be able to save for something fun.
For assistance with finances, call our office. We will help get you on track, and can offer legal options when you’ve exhausted all other efforts. Call a Plantation, Florida debt relief attorney today for more information.