How do I balance my checkbook after a month?
As much as the world has become digitally advanced, it is seen as an essential function in the financial world that a fellow human being must personally know how to balance his checking book.
Even today, most people balance their bank accounts or checking book – either by accessing the bank’s website or using the bank’s app. I don’t mean these as modern methods! However, as you continue to do this, an understanding of your savings account finances will automatically come to you.
How can we increase the amount of our savings account and reduce expenses? First, understand clearly that the process of balancing the checking book (how much we invest in the bank account and how much we take out of the bank account for monthly expenses) is the sole source of these financial improvements.
What are the benefits of a checking account?
Here are some of the benefits you get from balancing your checking book:
Protect yourself from money transaction scams. That is, money from your bank account goes out to other people just by you. Or are some money transaction scams happening without your knowledge? As you can easily know through these.
Here you can save huge amounts of money – without paying any fees and that includes overdraft fees.
You can easily detect and correct any transaction-related errors in your bank account.
With these, you can keep your luxury expenses under control. And you can make your life brighter by prioritizing essential expenses.
Justin Nabity says – By balancing your checking book at least once a week or once a month, you can keep your bank account under control for fraudulent transactions, errors, and expenses.
Justin Nabity is the founder and CEO of Physicians Thrive, a financial planning firm headquartered in Omaha, Nebraska.
You should have or maintain a record of what cash transactions you have made so far in your bank account before balancing the checking book.
What is something important to remember when balancing a checking register?
Things to keep in mind before balancing the checking book are:
The bank will update the transactions you have done so far in your bank account.
Note: Cash transactions here include all expenses and money transfers made by you using your bank account and “amounts paid in interest or charges”. We have seen these with examples, but they mean everything – direct deposits, debit card charges, paper checks, cash withdrawals, overdrafts, ATM or other bank fees, and, for some types of accounts, the interest you earned.
There are generally three facilities to keep track of transactions in your bank account. They are checking book registers, notebooks, and banking apps. Also, try to keep a collection of other or external cash transactions, investments, and withdrawals you make using your bank account along with its receipts. With this, you can easily update your old bank account – even cash transactions!
Mr Bryan R. Routledge, associate professor of finance at Carnegie Mellon University’s Tepper School of Business – gives a brief explanation of this:
What he says is – Once you start collecting the receipts for every transaction you make using your bank account, you will be able to easily identify the unnecessary confusion and errors in your bank account, the forgotten money and the often missing balances.
How to Balance Your Checkbook
You should properly register all the transactions you have done so far using your bank account. Then the bank will verify that all the cash transaction receipts registered by you have been processed in your bank account or with your permission at Thana Bank. At the final stage, the bank will check your transaction activity to see if everything is correct and after 100% confirmation that no fraud has taken place in your bank account, the bank will delete your transaction receipts from the records.
In this type of situation, you often have a balance of unprocessed cash transactions. Mostly these unprocessed cash transactions can happen in three ways – 1) Debit card cash transactions that haven’t been posted yet 2) If you’ve written a check to someone to deposit it but they haven’t deposited it yet and you get this check error 3) You go directly to your bank for a specific Let’s say you are depositing the amount – but your bank has put a temporary hold on it for some reason and you are more likely to encounter such transaction errors.
I have told you earlier that you should always keep a receipt for every expenditure you make using your bank account. This is where you will fully realize the benefits – how about “Ask your bank to give me a batch of all your transactions and they will give it to you in a few days – and then your work starts here! That means you will have a receipt in your hand for all the expenses you have made so far.”?You have to combine it and calculate its total amount.
Then check whether the total amount of expenses you found and the expense accounts of the money transaction information package given to you by the bank are 100% correct” so that you can date small unnecessary charges and even frauds in your bank account. With “This is false or I did not do this transaction” you can prove your bank with proof.
Your Amount Doesn’t Match: What’s Wrong?
What can you do if the transaction amount given to you by the bank does not match the total amount you spent?
If the bank’s transaction information package and your expenses do not match, you should try to repeat the following steps so that you will know clearly whether there is an error on your part or the bank’s account file.
There are generally three reasons why your transaction totals may go wrong – the calculation is done by you, not by the bank! Unexpected mistakes humans make when:
A) Failure to record the receipt of cash transactions.
B) Unintentional errors while adding or subtracting cash transaction totals.
C) Confusion when adding dollar cents (trying to calculate by recording the wrong dollar value).
Routledge says “Most cash transaction errors are not on the bank’s part! It’s entirely your miscalculations and forgetting to keep records of receipts”.
Try to avoid transcription errors: For example, if you use a check to spend $80.75 and enter it into your account or calculate the total amount of the transaction, it is called a transcription error.
If your bank account has been deducted or debited for any unexpected reason beyond the usual fees charged by the bank, you should inform your bank as soon as possible. Even if you have doubts about it, you can freely ask your bank officers!
If you use money transactions for your needs that are not authorized by your bank, the bank will impose many restrictions on you to deal with the problems you face.
For example – if your debit card is lost or stolen you must report this information to your bank within two days of the day it was lost or stolen. When doing this, you are only responsible for up to $50 of whatever amount the thief takes from your debit card.
You may be liable for up to $500 if you do not report this information to your bank within two bank office days! This means that no matter how much money the thief takes from your bank account, only $500 will be debited from your bank account.
If any unauthorized debits have occurred in your bank account, it is better to inform your bank immediately so that you can easily get out of these unnecessary frauds. If you do not report this to your bank immediately or within 60 days, the bank will give you a notification that you will be fully responsible for the unauthorized debit amount.
You can report this problem to your bank immediately using any of the facilities like online form, email or phone call. Perhaps if your unauthorized debit is a large amount, it is best to go directly to your bank or if you cannot do so, search the internet to see if your bank branch is near your home – then go there and report your problem to a bank officer and try to resolve it.
Sathish is a full-time blogger and freelance writer with a passion for side hustling, passive income, and the gig economy. True Home Occupations is all about providing people with honest ways to make and save more money by using technology. To learn more about Sathish, read his About Page!
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