Five Steps to Managing Your Checking Account

Managing your checking account can be summarizedpossible. If you cannot go personally to the bank and
into five simple steps. These steps are essential toyou use the telephone instead, be ready to discuss the
master so that you can properly manage yoursituation in detail to the service representative.
household expenses and your budget as well.Money management is much easier when you know
The first step is to choose a bank that you like. Go towhere your money is going. It is the proof of all your
the various banks and credit unions and ask themfinancial transactions so it is essential that you keep a
about the different kinds of checking accounts thatcopy of them for your future reference. Not just any
they offer to their clients. The most important questioncopy but you need a written records so print them out.
you might ask is about all the fees that go with theEven your online banking transactions should be printed
account such as the ATM fees, cost of check,out. When it is time to throw your records out, shred
monthly fees, overdraft protection and overdraftthe documents first for they contain vital information
charge. You should also ask if the account in questionyou would not want other people to have.
would be available for online banking transactions. FreeStep number four is to keep a close eye on all
checking is always a good bonus but do not baseautomatic payments and deposits so you can be
your decision solely upon it.assured of its accuracy. Even if the system is in
The second step has to do with recording yourautomatic already, you should not assume anything.
transactions. Keeping records can be boring andYou should have a general idea of what your normal
tedious, but it needs to be done. Put down in writingtransactions look like so you can spot things that are
every monetary transaction, all deposits and evenout of the ordinary.
ATM withdrawals. This process will help you keepStep number five is to avoid a zero balance like the
accurate bank records.plague. Do not totally deplete your checking account.
The third step is to balance your checking accountYou should always keep a cushion of a few hundred
transactions every month. When you get your monthlydollars in your account so you can use this money as
statement from the bank, reconcile it with the data youa hedge against emergencies and overdrafts. If you
input in your check register. When you do this, you canare smart, you'll have set up an overdraft protection
often find mistakes and most often it is your mistake.account so you don't get charged excessive fees if
Sometimes it is a true banking error or it could even beyou do make a mistake in your records that causes
fraudelent activity. It is always helpful to be able to findyou to go below zero.
these mistakes and keep all your records straight. InFollowing these five suggestions will help you on your
case there are errors and discrepancies, contact theway to good money management skills and help you
bank immediately in order to correct it as soon aslive life more comfortably.