Opinion - Money Tip - Check Balancing 101, Queen of the Household

As a woman, you are the queen of your household. One of your responsibilities is making sure that your kingdom “household” is solid financially. Curves and The City has tips that will help you fulfill this great responsibility.

Remember a queen operates on her on level, a higher level of thinking, and has a different way of doing thing, a different and better way that sometimes defies common ways.

All of us need to know how to effectively balance our accounts. You need to have a general knowledge of your monthly income and expenditures. Your monthly income should not include the money earned when you work overtime. This means the money earned during overtime should be used for those unsuspected emergencies or to be saved in a different account. If you find yourself needing to work overtime to maintain your daily living, that is a sure way to destroy your financial goals. Remember when you are too tired, you are less productive and that can be detrimental to your future and job.

Let us talk about your checking account. What you need to do, is to write every expense in the right column. Those who are computer savvy or those who have smart gadgets do the same. Just be mindful that you need to record what goes in and what goes out, even when you have a debit card. Another kicker for you is whenever you record your expenses; do not record the exact money you spend. What I am trying to say is inflate your outgoing cash.

For example if you write a check or use your debit card for $100, when you record the expenditure, record it as $110. This serves two purposes: (1) you can avoid being overdrawn in this busy society when you forget to record an expense because then the extra cash you have in your account would help you prevent a check that would otherwise have bounced all the way to Miami. Sometimes you might not realize that your funds are dwindling. (2) The other purpose serves is that you will have a savings account within your checking account.

Confused, well let me explain everything. When you write a check or use your debit card, you would in your mind, have over charged yourself $10.00. Remember that, that is what you recorded in your” checking account”. So your balance may read $100 when you actually have leys say $110. If you continue to inflate your charges, you might end up with an excess of over $200 or $300. You have to be faithful to your hard earned money. You deserve to indulge once in a while without you feeling the pinch of using the money that you would have used for other things. This is what I call your “non-existing funds”

Taken from the book, Emotional Makeover, A Practical Guide

By S. Pauline Zulu