Are you good at managing your accounts. Or do you have the tendency to overdraw, and sometimes go overboard and do so beyond your authorized limit. True to its word, you pay for your uncontrolled withdrawals. Bank charges you overdraft interest at unauthorized overdraft rate, if your withdrawals go beyond the authorized limits. You land up paying for more just for your spending sins. You can avoid this by being sensible and managing your accounts so that you don’t withdraw more than you should, maybe not withdraw at all.
• Manage your credits and debits sensibly. Make a spreadsheet and chart out your receipts and expenditures. Prepare a in-house monthly cash statement and include expenses like monthly revenues from all sources and expenses on the other hand. Make sure you add the direct debits from the account so that they are paid for in your expense sheet to help give you a correct picture
• You can spend some time doing a bank reconciliation with your statement on one hand and your bank statement on the other. This helps keeping track of the expenses. Expenses that you don’t recognize can be brought up to the bank for clarification. On the other hand if you haven’t included them in your expenses you can add them there. once done, it will help you get a clearer picture and you can budget accordingly.
• Take stock of your direct debits from your account. Check if any payments have been made inadvertently, or that have been moved of your account by mistake. Stop services of something that you no longer need. Claim back money that has gone out before you have actually budgeted for it.
• You can put in money for more than a month. This helps in making projections for more than a month. It helps in covering expenses than suddenly taking you of the line and putting you in an overdraft situation. Also, it helps in a situation where you for some reason your payment comes in late. The excess money helps in forming a protective shield against the excess withdrawals or excess and sudden expenses.
These little steps help in managing your bank account sensibly without you running into overdraft and having to pay for the interest.
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