Keeping an eye on finances is not just for those people who are running to a tight budget, or for that matter, suddenly finding themselves with something of a cashflow problem. It is, however, a task that should be done regularly because, regardless of your financial status, or what you are planning or saving for in the future, looking after ‘the now’ is very important.
#1 Unknown Debits from Your Accounts
You would be surprised by the number of people that are having small amounts debited from their accounts every month. Among other common scams, fraudsters withdraw small amounts from bank accounts that they think will not be noticed over a long period. However, keeping a track of your monthly outgoings will also limit mistakes, and canceling any unwanted or unused subscriptions, such as monthly gym membership, could also see your balance bouncing back.
#2 Defaulted Payments
If you are not in control or checking your accounts regularly, you may find that you can easily default on payments, bills, loans, and even your mortgage. This could very well put your home as well as other possessions, such as your car, in jeopardy. You may find that missed payment could lead to penalties and even, in extreme cases, repossession.
#3 Tracking Deposits to Your Accounts
It is not all about what goes out of your accounts, but also what goes in. Watching your wages, for instance, should be done carefully. Checking wage slips for hours worked, and overtime payments that are due to you are important, and don’t just assume that your employer or the HR department is going to get it right every time.
As well as doing this, you should make sure the right amount hits your bank account on the day that it is scheduled. If you find that this has not happened, there may be legal aid, like the Colorado Wage Act, which may help you resolve wage issues or prompt you to what evidence you will require to take the situation further into a court of law.
#4 Living Within Your Means
Everybody, from time to time, will live beyond their means. However, by keeping a close eye on your finances, you will find that you can control the quite literal tipping of the balance before it gets out of hand. You can do this by preparing yourself with a budget for the easy months, as well as the tough months, and having a much smoother financial ride throughout the year. Budgets can be drawn up for food bills, treat or reward spending sprees, and even utility bills.
It is important to keep an eye on your finances, rather than just trusting that everything will work out alright. Payments can slide, and not just ones from your bank accounts, but also those that you rely on to make ends meet. Budgeting can be made fun if treats are saved, and it can become a very good habit to track all payments and know where your money is going.