Year’s ago people used to be more vigilant with their spending. Perhaps because things were more about cash than anything else. There were no debit cards or direct debits. Everything was handled with a cheque or cash, and so it was much easier to keep track of what you spent your money on. These days you can sign up to things, set up withdrawals and pay for things with a click of a button and a swipe of a card. It’s that simple. Which means we are less aware of what we are spending each day. So with that in mind, I thought I should share with your five reasons why you should pay more attention to your bank balance.
Paying for something in this day and age can be done by a click of a button. Which is why fraudulent transactions can happen more frequently than before. But without regularly checking your bank balance or statement these transactions can go unnoticed. Most fraud takes place on small and regular amount rather than larger things. This is when people can get away with it for so long because you don’t notice the transactions taking place. However the moment you do notice something isn’t right, speak to you bank and advise them. They can cancel your card and refund any transactions you didn’t make.
Direct debits for things you don’t need
Some people sign up for things these days. Many companies and subscriptions offer free trials to entice you into the service. Hoping that after the free period you will forget to cancel, and you start paying for something you don’t want or need. Again these can be a small amount so they can go unnoticed. Most of these things require you to hand over your card details to obtain the free trial. Things like a magazine and online movie subscriptions can be where you are hit the most.
But it won’t appear like that on your statement; you may find yourself wondering what Bill Hub is. You may question it. But you will find at some point you have handed over your card details and forgotten about a free period. Keeping an eye on your bank balance will determine when things are being spent. It will allow you to cancel such subscriptions or services when they start to be debited out of your account.
Does your bank account work for you?
Checking your account regular can identify a few issues with your bank account. Sometimes the account you currently have won’t be the best one on the market. You may be being charged excessive fees for overdraft usage or not earning any interested on the balance you have in there. Some bank accounts can work much harder for you, so it’s always worth checking what is available to you.
When you get excessive charges
Sometimes we use our bank accounts each totally unaware that we are being charged for using an overdraft or going over a limit. Not checking your bank balance means that you may even be unaware exactly how much money you have in the bank. This means you leave yourself wide open to excessive charges in interest or fees.
Some banks can charge this daily believe it or not and the amounts can all add up. Suddenly a big debit of fees will be taking from your balance, and there won’t be anything you can do about it. However, it’s worth checking the fees you are being charged. Some banks now have a legal obligation to refund you anything that was excessively charged. The thing is, without keeping a close eye on things, you won’t ever know when this is happening.
Enables you to budget better
Finally, keeping a track of your bank balance and finances allows you to budget more. You can work out what you have as disposable income which may encourage you to save more each month. Being aware of the amount of money you have coming in and going out is essential to a budget. A budget can mean you keep a much better track of your finances and allows you to spend your money on other things like holidays or saving for a property. You could even go as far as having different pots or accounts for different things, like birthdays or special occasions.
I hope this helps you to keep a track of your finances better in the future. Most banks now after a phone app which means it’s now easier than ever to keep on top of things. If you are unsure about your bank, just give them a call and ask.