Balancing a Check Book – The First Step In Being Financially Responsible

man looking at bills

With pay-at-the-pump options and every store asking for debit or credit, balancing a checkbook has become more difficult than ever. If two people share an account, multiple transactions and constant swiping and scanning can lead to disaster, especially if a paper check is floating around, just waiting to clear. The main goal—and perhaps the biggest struggle—should be to maintain a positive balance that doesn’t teeter on the edge, so you’re prepared for last-minute emergencies and sudden cash needs.

Financial analysts always recommend paying yourself first. This means setting aside some money for savings. Many couples think that a small amount, like $20, won’t add up, but over time, it does. Instead of spending that $20 on a dress you don’t need, why not put it into savings? If you’re lucky enough to win at bingo, deposit the money straight into a savings account rather than spending it immediately. Be tough on yourself about saving. The next piece of advice in balancing a checkbook is to create a budget and stick to it. Every good budget should have a margin of error to keep you afloat in case of an emergency. Living within your means, saving money whenever possible, and viewing your finances as a critical part of your home and life are essential to avoid financial chaos. Don’t feel like using coupons, searching for discount codes online, or waiting for sales is inconvenient. You work hard for your money, and it shouldn’t be spent recklessly. Wealthy people are often skilled at finding bargains and living well with less. Buying in bulk may cost more upfront, but it can save thousands if done with planning.

The Challenge: Controlling Impulse Spending

If you and your family are struggling to keep the checkbook from becoming a nightmare, rise to the challenge of not spending unnecessarily. Try to see how many things you can go without and commit to asking yourself before every purchase—big or small—“Do I really need this right now?” You’ll find that 90% of the time, you can put items back without disrupting your life. Turn it into a game: Every expense over $20 is a “big” one that requires a two-day waiting period before purchasing. Nine times out of ten, you’ll realize that your original impulse was unnecessary, and that $35 pair of jeans or extra groceries weren’t needed after all. This approach will help you balance the checkbook, stick to your budget, save money, and become more conscious of impulse spending. These small, spontaneous purchases are often what break the bank.

One of the toughest aspects of balancing a checkbook is keeping track of the small charges put on your debit card. Combine that with cash withdrawals and fees, and you’ve got a recipe for disaster. While both spouses should have financial autonomy, individual spending should still be kept within the boundaries of a budget. Talking about bills, due dates, and handling money together is the best way for two people to manage a joint account. If a shared account doesn’t work, try two separate accounts, where each person keeps track of their spending individually. Another option is to withdraw a specific amount of cash each payday and put it into a till. This is all you’ve got until the next payday. When it’s gone, you’re out of luck. At first, this might be a difficult adjustment, but with persistence, it works. Over time, you and your partner will learn how to make that cash last longer, and fast food lunches, gum, or overpriced drinks on the go will become a thing of the past. Much of financial planning is about staying aware and being mindful of what you spend versus what is truly necessary.

One downside of technology is that access to our money has become almost too easy. Online banking is convenient and should make it easier to keep track of your account balances—especially if you check it regularly. However, budgeting and communication are still crucial. If partner A has no idea what partner B is doing, or if check C for the car insurance is due, the whole plan can be derailed. This disruption can have a ripple effect on the weeks or months ahead.

If you receive extra money—such as a bonus or an unexpected dividend check—put it straight into savings. Avoid linking your checking and savings accounts to debit cards, and if possible, open them at separate banks. This way, transferring and withdrawing funds will require more effort, and in a pinch, you’ll be forced to think and act differently. The best deals for growing your money can be found in online institutions. Currently, ING Direct and Ally Bank offer higher interest rates than traditional brick-and-mortar institutions, and both are stable. An additional benefit of these banks is that when your $20-a-week savings grow, you can easily roll that money into higher-paying CDs or 401(k) accounts without penalty for low balances. Financial experts also recommend placing as much as possible into investment opportunities, so you don’t get used to the idea of spending it. When you get raises, continue to put more into your future and less into frugal expenses.

Balancing a checkbook is about realizing that constantly nickel-and-diming yourself to pay for things like a new bathroom remodel or a car purchase defeats the purpose of good financial management. Credit and lines of credit can be useful if used with low interest rates and realistic payments, allowing you to put money into the bank while paying for larger expenses. Trial and error is the best way to take control of your finances and your metaphorical checkbook. If something doesn’t work, remain flexible and change your approach, as long as it benefits your long-term interests. Budgeting and communication are, by far, the two most important elements in keeping both your checkbook and your life in balance!

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