Discover the best ways to manage your bank account and learn how by understanding the banks’ terms and conditions you can save yourself a lot of time and money. Successfully handling your bank account doesn’t necessarily have to be hard work but with a little organization and forethought you will more fully comprehend how your personal finances operate.
1) Keep all paperwork
Safely filing away your bank statements and agreements is the first step on the way to controlling your accounts properly. Keep all the information in separate files, whether you use an Internet service or old-fashioned paper copies.
2) Simply put
Keeping your personal accounting up to date doesn’t have to be a chore. A simple spreadsheet with your incomings and outgoings will keep you informed of where you are spending your money and indicate the places where you can make savings.
3) Multiple accounts
It is recommended that you keep at least two bank accounts. The first is the one into which your monthly salary is paid and from which you pay your bills, rent, and mortgage and cash expenditures. The second bank account is used for controlling emergency payments, savings and long-term plans, such as holidays.
4) Payment dates
Check your direct debit payment dates to make sure there are no large gaps between payday and the payment due date. This can be a cause of many banking problems and is simply resolved by contacting your credit card company, utilities provider or loan provider to amend the date that money is taken out of your account.
5) Clear debts first
Most independent financial advisors will tell you that one of the biggest expenses for any individual is the interest incurred on their loans and mortgage. Once individuals realize just how much money they pay out in interest each month they soon understand the need to clear off any loan agreements as quickly as possible.
6) Watch out
Once every week take five minutes to look over your cash and savings accounts to see how they are functioning and whether you are keeping to your budget. Regularly reviewing your expenditure will allow you to make successful realignments to your budget plan if unforeseen circumstances arise, and allow you time to spot areas where additional savings can be made.
7) Keep to the agreements
Lots of people make the mistake of thinking, “It’s only a couple of dollars overdrawn and the money goes in tomorrow.” Check your terms and conditions and you will see just how differently the bank sees these matters. Keep to the agreements and save money in bank charges.
8 ) Understand online benefits
Internet banking is offered by most banks these days and gives customers an easy and effective way of controlling, checking and managing their accounts. Make sure you are making the most of your online banking facilities.
9) Pay attention
Regularly reviewing your bank account online will give you the chance to check all banking transactions. Watching out for mistakes or errors can save money and help avoid unwanted penalties on your accounts.
10) Read the T&Cs
Finally, read the terms and conditions. Many people don’t do this and then complain when they experience charges and penalties. Don’t leave it until it is too late.