How to Keep Your Checkbook Balanced
It is easy to balance a checkbook, if you do it regularly. That is the real key to keeping a clear picture of your finances and avoiding costly overdrafts and fees. E-tools are helpful, but they are rarely in real time. If you balance your checkbook as you make each transaction, you will never again have to wonder whether you have enough money in your account to cover a purchase.
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Instructions
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Record every purchase or deposit in your checkbook register. Save receipts, including deposit receipts, and be sure to write down each transaction as soon as it happens so you don't forget. Keep a notepad with you at all times.
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Review your monthly bank statement as soon as it arrives. Note the closing date: The balance on the statement indicates the amount of money in your account on that date, and your record keeping will help you fill in what has happened since then. Follow the instructions on the back to bring your balance current.
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Access to your account online and check it against your new balance. Bear in mind, however, that all the transactions you have recorded in real time will probably not match the online balance perfectly. They will only match once everything has cleared the bank. If at all possible — especially if you've had a problem with balancing your checkbook in the past — avoid making any transactions for a week or so to make sure everything has time to clear, then check your balance again.
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Tips & Warnings
If keeping a balanced checkbook is too much for you, just use cash. When it's gone, it's gone. You won't have any bounced checks that way!
Report errors to your financial institution as soon as possible after discovering them.
References
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