Protect yourself against the possibility of writing bad checks.
The most important thing that you need to do in order to manage
your checking account is simple: keep track of all of your
transactions. This might be annoying if you end up writing a lot
of small checks for small things, but in the end it will
definitely be worth it. By writing down each check you write and
the amount that they were for, you'll know exactly how much
money you have to spend, how much you have spent, and whether or
not you can afford what you are buying.
There are a lot of good reasons to know where all of your money
is going. However, they are not the only reasons why you should
learn how to manage your checking account. Let's say you are not
keeping track of the amount of money that is in your checking
account. You know that you are getting close to the end of your
money, due to it being near the end of the month, but you're not
entirely sure. Therefore, you write your last check - and it
bounces. Bounced checks are not only embarrassing, but they will
result in a lot of lost money for no reason other than that you
were careless. First of all, most establishments will charge you
extra fees for bounced checks - and may not allow you to write
checks in the future. Second, most banks have hefty overdraft
fees - and you don't want to waste your money paying those.
The next thing that you should do if you're trying to learn how
to manage your checking account, is to try and make sure that
you always have a few hundred dollar buffer in your account.
This is not just to pad against overdraft fees and bounced
checks, but can actually come in handy. For instance, it's
always possible that there could be an emergency situation in
which you need some extra money - in which case having extra
dollars in your checking account could be a life saver.
When it comes to managing checking accounts, these are really
the most important things that you should do. Always make sure
that you have extra money in your account - and keep track of
your expenses!
About the author:
Jakob Jelling is the founder of
http://www.cashbazar.com. Visit
his website for the latest on personal finance, debt
elimination, budgeting, credit cards and real estate.