How to Become Your Own Banker

Many people either do not understand or are not aware of their own financial situations. While taking care of financial matters can be both tedious and difficult, it is not impossible. With proper preparation and information, you can become your own banker.

Things You'll Need

• Monthly bank statements for all accounts
• Checkbook and register
• Montly income totals -- take home pay only, after taxes
• Monthly bills and expenses
• Online banking access information -- passwords and usernames
• Calculator

Instructions

1. Starting with an accurate balance is essential. Balance your checkbook by comparing your register to your bank statements. Begin by using the ending balance from the bank statement. Then add or subtract all transactions that have not yet cleared. The remaining total should match the balance shown in your checkbook register. If there is a discrepancy, go back and check for errors and omissions.

2. Create a budget. Budgets help with understanding money management issues. Begin using your total take-home monthly income after taxes. Then subtract all monthly bills and expenses. Don't forget to account for unexpected or abnormal expenses and savings. There should be a positive balance left after all subtractions. If not, explore ways to either increase income or decrease expenses.

3. Monitor your accounts online. After establishing a proper account balance and monthly budget, regular monitoring is essential. By checking accounts online, consumers can keep a close watch on expenditures and look out for unauthorized charges.

Tips & Warnings

• If you have problems balancing your checkbook, bank professionals can help. Simply take your checkbook and register to your banker and he or she will balance it for you.

Resources

• How to Balance a Checkbook
• How to Build Your First Budget