There are many challenges that we face when dealing with creating and staying on a budget. One of the most common mistakes that I hear about most often from my clients who are learning how to stay on a budget is not keeping good records.
This is especially the case with spouses and joint checking or savings accounts. Remember that family requires a joint effort. Joint accounts tend to have a greater number of problems because there is more than one person accessing the account. Joint accounts require much more communication between the users to avoid unexpected surprises.
Remember to record
Regardless of whether the account is joint or single, we should make sure that we frequently record every deposit and withdrawal that occurs in our bank accounts. Balancing our checkbooks regularly will help ensure that we are still on the right track as far as our budgets are concerned.
We also want accurate records of our available funds should we ever run into the need for a quick decision. If we keep our records updated consistently, we can reduce the stress and anxiety that comes from looking at massive amounts of unrecorded receipts and bills.
Many of us choose to have our paychecks deposited directly into our checking accounts. Although most of us would not feel the need to complain should our accounts have more money than we expected, we should make sure that we record these deposits accurately. We should record every deposit we make, whether it is done electronically, at the ATM, or inside a branch.
Don’t forget automatic transactions
Most of us have no problem keeping track of money coming in. It’s the money going out that seems to slip by. Most importantly, we need to keep track of all of the automatic deductions that we have authorized from our accounts.
By far, this is the biggest area of concern and frustration for most families having trouble with their budgets. Since there is no check to write out, we can sometimes forget that the funds are being pulled until after we get an overdraft notice.
We should also properly record all ATM withdrawals. I used to find myself running to the ATM to pull out $20 bills on a regular basis. Since it was so quick and impulsive, I often forgot to record the withdrawal in my checkbook register when I got home later. These minor transactions can easily cause our checking accounts to be overdrawn if they are ignored.
Get receipts
Lastly, when using cash, we still need to ask for and keep receipts. This is important because we want to get ourselves into the proper discipline of sticking to our budgets.
It is easy to forget where our cash went, especially after being out all day. We may start out with a $20 bill and, after spending a little here and a little there, it is all gone and we are unable to account for it.
As easily as it happens with a $20 bill, it can happen with $100 or more. The receipts are a reminder to stay within the budget we’ve designed. Once our patterns are intact and we are comfortable with our budgets, this becomes less important.
Initially, creating and staying on a budget may feel difficult. However, we can get things on track by updating our checkbook register, remembering to record automatic transactions, and getting receipts for cash. These few things could make our financial lives just a little bit more manageable.
