When it comes to the subject of money, the consensus from the audience would be that they have too little of it or that they never could understand where all of it goes. Since it is most likely that you have a bank account from where your income is instantly funnelled into, then one easy way to keep track of your finances is by keeping a keen eye on the amounts that make their way into your account and the amounts that are channelled out through the same account.
Below are some of the dos and don’ts of how you should manage your account:
Do make a Budget that Works for you
If you’re adamant that you shouldn’t follow your budget, then pick out the most unrealistic budget and you’re good to go. However, if you do build a budget which takes into consideration how much you, more or less, spend in a month against how much you make, then you’ll have a higher chance of actually following through.
Yes, you can be as strict as you want to be with your budget and weed out unnecessary expenditures, but, at the end of the day, your budget has to be workable.
Do keep an Eye on unnecessary Charges
In a world where transactions happen in the blink of an eye and in the digital sphere, you can be charged if you do not keep track of how much money is in your account. For one, if you make a payment using your debit card and not enough money is available to cover your purchase, you’ll be slapped with a rather hefty fine for that.
The same way goes if you issue a cheque and it bounces even if it wasn’t intentional. One way for you to avoid these fines is to simply be aware of how much you have in the bank before you make a transaction.
Do Coordinate with your Bank
Life is filled with so many uncertainties and your bank understands this. This is means that if you are strapped for cash, your bank can help you out for the time being while you work on getting back on your feet. You may be given an overdraft limit which, although this is still charged interest, is a huge help in getting your finances back in shape.
Most importantly, if you have a problem with settling your obligations, talk to your bank about this before things really get worse for you.
Don’t Forget to Read the Small Print
Especially when you are taking advantage of a deal, you shouldn’t haphazardly sign on the dotted line without reading the fine print. A lot of individuals got themselves into huge trouble by accepting pre-approved credit cards without even reading how much interest they would be paying for the use of these plastic cards.
You may find yourself swimming in so many fees simply because you didn’t take the time to find out what you may be penalized for and how much you’d be paying for each penalty.
Phil Farell is a finance writer who loves to give useful tips to overcome bad debts. He also shares his insights on investing, financial management and lease financing. He follows Nick Scali on twitter for wise investment tips.