Having a checkbook at hand is less common nowadays with modern technology taking over everything. With online banking, it makes accessing and managing your financial activity much easier. But, it’s still a good idea to manage your account outside of your online access as well. A balanced checkbook is one of the many ways to manage your financial goals.
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A Checkbook Register
Before we were able to access our financial history online, a checkbook register was one of the easier ways to check your transaction history and account balance. This is found at the back of your checkbook. Back then, it was easy to simply write a check with the total amount and add it later. With deposits, withdrawals, deductions, etc, owning a checkbook and writing checks out is how you managed your account.
Even if this is an old practice, this is an important physical way to manage your money. Many Americans today live paycheck after paycheck, which normally results from poor money management. Tracking what you’ve spent and how much you earn is a great way of calculating your amounts much better.
Balancing Your Checkbook
Fortunately, when it comes down to balancing your checkbook, it’s not that difficult. Plus, it can be very beneficial to you once you get the hang of doing it. A great tip is to log everything you do financially. For example, when you buy groceries or go shopping, log the amount in the register and subtract it from your account total. When you get your paycheck log it and add it to the rest of your money.
Then, check the bank’s work. Back then, customers would have to wait for a banking statement at the end of every month to compare it with their check register. Now, with advanced technology, online banking takes the long wait away. Just check your app to view the balance in your register. However, with the conveniences of online banking, it still comes with several disadvantages.
There is still a lag when money is being put in or taken out. It will all depend on the type of transaction that you’ve made. Hypothetically, if you pay by check, it will take a couple business days to process in the balance. Be sure that you did your calculations correctly. If you find a mistake, contact your back immediately to discuss how it can be fixed. Mistakes can cost you a good amount of time and money.
Mistakes and Tips Balancing a Checkbook
Anyone can make a mistake when they are balancing their checkbook. Keep a watchful eye for anything like that, it will build up fees on your account in no time. Normally, it will take more than two people to make a transaction possible. So, it’s better to work together to fix any issues if any were made.
Fees can be made from the account holder or other merchants as well. It’s natural that human errors happen. A shocking fact about bookkeeping is that it can make a domino effect if you don’t have sufficient funds. This will reflect on your account poorly.
Typically, you will want to stay away from overdraft fees, bounced checks, fraud bills, and making big mistakes. This can all be avoided when you maintain an updated checkbook balance to track your activity. A checkbook register, signing up for internet banking, or reconciling checks are excellent ways to keep track of inputs and outputs. It doesn’t necessarily have to be a handwritten checkbook either. There are many different apps that log deposits, withdrawals, and other transactions you make.
Technology For Better Banking
Balancing a checkbook does seem old-school. However, with technology today, it makes this practice more convenient. Several of these apps will include:
- YNAB: You Need A Budget- This app is excellent for saving and budgeting rookies. Balancing your checkbook is much easier and they provide step-by-step guides on managing money.
- Mint: With Mint, they help you track your money in real-time. It will connect all of your bank accounts in one app for you to manage.
- Digit: They will save the money for you. It moves money into your savings account everyday so you don’t have to transfer it yourself. No worries, it won’t go over how much you’re able to afford.
- IOU: Normally, this app is used by people who like to lend or borrow money frequently. They send alerts when money is owed and to who you owe it to.
- BUDGT: For people with a sporadic income, this app is perfect for you. It comes with a monthly budget that you can make with recurring and one-time expenses. Plus, it even comes with a summary of where the money went.
It’s good to know where your money goes after you’ve earned it. Taking advantage of a checkbook register is great for keeping track of your transactions. Additionally, when you go over everything at the end of the month it’s perfect for double checking calculations.
Conclusion
A checkbook can come across as old fashioned, but it’s still a great way of managing your finances. Now, with modern technology, balancing a checkbook is made much easier to access with a click of a button. It’s an excellent way of checking your money income and outcome at the end of the month. However, it may come with additional fees if you aren’t careful. These fees can build up overtime if they aren’t taken care of as soon as possible.
