Financial Checkup

 

    When you know how to budget all you have to do is get started.  Getting started is the hardest part.  Allowing what you discover to motivate you into change is worth the financial freedom.  The simplest way to check up and make sure you are staying on track is to look at your checking account.

    It is important to regularly balance your check book.  It is much easier on you and quicker if you do not do it only once a month or less.  I recommend looking at it daily to make sure everything showing makes sense.  You will catch fraud a lot quicker this way.  I think balancing once a week is good enough.  It is a very short process that will not be difficult for the average household.  However, if you are a big spender, then maybe more often.  By the end of the month, you are just comparing it to your bank statement.

    Balancing your checkbook starts with the register.  You can use the paper or excel/google spreadsheet.  The balance at the top should be what you had at the beginning of the month.  It should match your bank statement unless you have outstanding checks or other charges.  If you are wanting a fresh start and got a new bank, then the beginning balance is what you put into the bank account.

    After the beginning balance, you start subtracting what you spent and adding deposits.  You record things as you spend.  Do not wait for them to clear or you will eventually over draw your account.  Banks love that because they get a healthy fee for you over drawing, but you are just giving away money that you can use toward something important.      

    In the registry you enter items starting with the the date of purchase or deposit on the far left.  Next the check number or type of item: ATM, OLB, Cash, Deposit.  Make it as details as you need to keep things straight.  Next is the description: Cash for birthday, Payroll, Bill Company, Groceries, Gas, and more.  The first money column is for deposits, then debits, then the total.  If you have google or excel, then you can switch the deposits and debits columns.  Whatever helps you keep things straight.  That is what matters.  You will want to keep the balance to the far right because it makes it a quick glance to confirm the balance.

    If the balance does not match up, then you are going to have to do a little investigation.  If you are using a spreadsheet, then I recommend highlighting the check amount or anything else that does not clear right away.  Most of the time the discrepancy is that something has not cleared yet.  Another common one is money came out that should not.  If you are doing the registry the traditional way on paper, then you will need to check your math.  That can become a little time consuming.

    Once the check book is balanced at the end of the month, you can print that page and put it with your banking records or keep an ongoing registry.  Just make sure you mark where you left off or it will become more work than needed.  If you print and start over, remember to carry everything over that did not clear the month before.  You do this and your balance should always be in balance.

Psalm 24:1-2, Proverbs 21:5-20, Matthew 25:21, Luke 14:28-30, 1 Corinthians 4:6-7, & 1 Timothy 5:8