Lots of folks think this is too much with the advent of online banking – but, you guessed it – I disagree.
Balancing your checkbook is an essential good money habit because it gives you a snapshot of expenses and credits for the month. It also allows you to see which checks haven’t cleared. Often times this lack of knowledge leads people to believe they have more money in their account than they actually do.
You check your account you think you have $500.00 but you forgot you wrote a check for $350. You spend $200.00 and then wham! – the check for $350 processes and you’re overdrawn eating an overdraft charge.
This could have been avoided by implementing Good Money Habit #5 and by balancing your checkbook especially if the check didn’t clear in the month you’re balancing your account.
See, lots – o – good reasons.
Check to see when your bank statement arrives in the mail or is available via your online banking system. Get out your planner and schedule when you will balance your checkbook.
There is absolutely no reason to do it the old-fashioned pen and paper method. Today, there are a ton of great systems that will walk you through the process of balancing your checkbook.
My personal favorite is QuickBooks which is a great tool for small business owners. There are several different versions to choose from: QuickBooks Pro, QuickBooks for Mac, or QuickBook Premier. Choose the one that’s right for your business.
If you’re looking for personal money management tools then Quicken would be my next recommendation. Again, there are several versions to choose from: Quicken Deluxe, Quicken Premier, Quicken for Mac, or Quicken Home and Business. Choose the one that fits your needs.