Staying disciplined with your savings is just as important as staying disciplined with your family budget.
When you open a savings account, you are given a passbook. Every time you make a deposit or withdrawal, the amount is recorded in the passbook.
Let’s say, for example, that you have an online business where payments are made to you through PayPal and then transferred to your savings account.
While you may know how much you have deposited into your account utilizing a PayPal printout, it is still important to update the passbook whenever possible. This way, you can be sure that the funds you have deposited are noted in the passbook. You also want to receive the quarterly interest from your bank.
Unlike a family budget where you have to record expenditures and income, the passbook does the work for you. Each time you make a deposit or withdrawal, it is duly recorded.
The discipline needed is in cases when you cash a paycheck and set aside money to deposit into your savings account. Both can be accomplished in one visit to the bank. If you keep deposit slips in the glove compartment of your car or in your purse, you can easily make the two transactions at the same time.
On the other hand, if you merely cash your paycheck at the bank and take the money home, there is no inducement to fill out the deposit slip until another day. Perhaps you decide that you do not want to deposit the amount you initially set aside. Or perhaps you have a deposit slip already made out but decide to rip it up because you need a few extra dollars for something else.
Let’s face it; we have all been guilty of changing those deposit slips ? even with the best intentions. But doing so sets a pattern for future deposits. This is where the discipline part of saving can make all the difference.
In these difficult economic times, we cannot afford to change the numbers that can adversely affect our savings. If the household budget calls for depositing a certain amount of money into the savings account, then that is the amount that needs to be deposited. No ifs, ands, or buts.
It’s quite easy to say we will make up the difference the following month, but the odds are that will never happen.
If you have a budget that requires a specific amount of money to be deposited in the bank weekly, bi-monthly, or monthly ? try to stick to the budget. That is the true test of discipline and your willingness to abide by your own financial policy.
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Staying on a responsible budget often requires that you make every dollar of your paycheck stretch as far as possible. Comparison shopping and carefully planning your purchases help you make the most of your money. Banking charges, however, often require a watchful eye to make sure that you aren’t hit with unexpected and unnecessary charges.
Banks all tend to charge different amounts depending upon the types of accounts you hold, as well as how you use your account. When choosing your banking partner, make sure you ask about some of these common “surprise” charges.
Teller Fees – Some banks offer free checking, but with limited access to the bank’s teller services. If you choose to use those services you may find yourself charged a fee or your account converted to a different type of account.
Overdraft Fees – Although you should plan to avoid these fees, accidents sometimes happen. If you do happen to cause an overdraft of your account, make sure that you deposit the funds to correct the overdraft as quickly as possible. If your account doesn’t have enough money to cover the overdraft fee, you may end up with an overdraft charge for the overdraft charge.
Check Printing – You’d think that checks would come with a checking account, but unless you carry a large balance, they probably don’t. Don’t make the mistake of purchasing your checks from the bank; you’ll pay much more for them. Check out the online sources for check stock to save a considerable part of the charge.
ATM Fees – If you regularly need cash from your account, you should find an account that has plenty of conveniently located ATM’s in its network. Otherwise, you may end up paying a fee to a neighboring ATM network when you use it, as well as a fee to your bank.
Other Service Fees – You used to be able to use your bank to take care of some miscellaneous financial duties for you. Money orders, cashiers checks, and notary services are all available at local banks. However, some banks are starting to charge for these helpful services. If you regularly use these types of services, make sure you inquire about the fees that go with them before you need them.
Bank fees are often a necessary evil. Although you can’t avoid all of them, making sure that you keep the cost as low as possible will help you get the most bang for your banking buck.
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