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Do you cringe each month when you see your bank statement arrive online or via snail mail?

You can banish traditional checkpoint balancing forever. How? By taking advantage of your bank’s “between statements” record-keeping. It’s perfectly legit and accomplishes exactly the same goal as statement balancing, but Instant Balancing is faster and simpler.

After all, the point of checkbook balancing is to make sure your bank hasn’t made any mistakes . . . and/or that you haven’t. Either way, most people want to avoid bouncing checks or the ever-embarrassing ATM “insufficient funds” message.

HEY! WHAT ABOUT MY BANKING SOFTWARE?

You say you have software for balancing your checkpoint? Get rid of it if all it does is balancing. This software compares bank records against its records and then you have to update your written checkbook records. These activities create way too much opportunity for error.

WHAT YOU NEED FOR INSTANT BALANCING

1. Your checkbook, the written one. If you insist on keeping the balancing program, then have the program checking account ready to review also. If you only keep your transactions in your software program, make sure it’s up-to-date.

2. Internet access. A simple dialup connection works just fine. An Internet security program is a must.

3. Access to your checking account ONLINE. Why? Because you’ll need “any time” access to do Instant Balancing. If you don’t have this access, call your bank and find out how to get it. Usually, you need a web site name and a username and password.

WHEN TO DO INSTANT BALANCING

How often you Instant Balance depends on how many transactions you generate in a given time frame. The greater the number of transactions, the higher the possibility of errors.

A guideline is to Instant Balance 1 to 2 weeks after the last time you wrote a bunch of transactions, like after you’ve paid the household bills. If your timing is good, you may not have any balancing to do at all!

6 INSTANT BALANCING TIPS

1. Use a calculator for checkbook additions and subtractions. Even if you’re a math wizard, you’ll make mistakes.

2. Because you may be logging onto the internet account infrequently, you may forget your user name and password. Record the information and put it in a safe place.

3. Your bank account internet access may time out after a certain number of minutes. Just log on again.

4. Most internet banks allow you to isolate transactions between certain dates. Use this feature - it cuts down on the number of transactions to review.

5. Recent studies shows that 12% of identity theft occurs online. If you are afraid of accessing your bank transactions online because of identity theft, don’t do it. Stick with the paper statement balancing routine.

6. Instant Balancing works best when your checkbook is up to date. It will instantly become Frustrated Balancing if you left out a few key postings, like an ATM withdrawal or an automatic deposit.

HOW TO USE INSTANT BALANCING

Remember the goal - your checkbook balance must agree with the bank’s balance. The assumption is that the bank has the right number. So, the bank’s balance won’t change, but your checkbook balance might.

The steps in the next section may seem a wee bit detailed at first. But, good news - there’s 3 “you’re DONE’s” scattered throughout the steps. If you’re lucky, you’ll be finished after step 2.

As with any new process, it may take a few times before you’re comfortable with Instant Balancing. The secret to Instant Balancing is timing. If your timing is good, you’ll finish at step 4. If it’s great, you’ll finish an instant after you access your online bank balance.

INSTANT BALANCING STEPS

1. Sign onto your bank’s web site and access your checking account transactions (in date order, latest transactions first.

2. Look at the bank’s balance and then your checking account balance. If they agree, you’re DONE.

3. If they don’t agree, figure out the date you last balanced your checkbook.

Tags: check balancing, check reconciliation, easy checkpoint balancing, money management, personal financecheck balancing, check reconciliation, easy checkpoint balancing, money management, personal finance

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Junk. We all have some of it lying around the house. Whether it’s boxed items cluttering the attic or everyday items that just don’t fit with the room’s decorating theme anymore, many of us have more than we need. At some point it all gets to be too much and in a fit of energy we decide that our place needs to be cleaned. Then the junk gets moved, typically to the nearest trash can. But wait. Before you throw out all that stuff, it pays to take head of the saying “one person’s junk is another person’s treasure.”

If you are about to throw out something because you think it has little value, you may come to regret it later. Those things that you consider to be trash many times have great value to collectors. If you have an item and have no idea if it has any worth, a quick first step is to head to the online auction sites like eBay. Input the item you have into their search engine. If similar items come up and there are bids on them, then someone out there thinks that the item you were about to trash has some worth.

If you are trying to get rid of a few select items, the online auction sites may be the perfect place. Simply place the item on auction for a minimum price and let others bid away on it. This is where you may find that old, ugly toy you could no longer stand the sight of looks like a perfect jewel to somebody else. You don’t even have to know how to list the items yourself anymore since sites like eBay offer services that will match you with someone who will list the auction for you for a small fee.

Even if the item doesn’t sell at auction, it still may be worth some money to you. If you have a large number of items that didn’t manage to sell on the online auctions, having a garage sale or heading off to sell at a local flea market for a day may bring in some extra cash. This is also a good way of getting rid of those everyday items that still have life, but you are certain are not worth a lot of money.

If you have an item that you suspect has some value, it pays to do a little research before placing it on auction. While the auction sites are a good place to see if something may have worth, they are not a good place to determine what the true value of something. Auctions can easily turn more emotional than sensible, and items may go for far more than their true worth. In the same vein, unique items that may not be familiar to those frequenting the online auctions may sell for far less than their true worth.

If you want to find the general true worth of something, the least expensive alternative is to head to your local library and check out collectible books and price guides on the subject. You can also search for Internet sites dedicated to the particular item in hand that can give you a good approximation of what the item may be worth. Another low cost alternative for those who don’t want to take the time researching is to take it to a pawn shop and see if, and how much, the shop would be willing to give you for it. Pawn shops will buy the item for a fraction of it’s true worth, so if you are offered a decent amount, you know that you have something of value.

For items that you believe may be worth quite a bit such as antiques or if you have a lot of items and want to make sure the gems don’t get accidentally placed with the ordinary items, it may be worthwhile to hire an appraiser. Appraisers charge between $150 and $300 an hour and you want to make sure that you get an independent appraiser that has no interest in purchasing the items you are having appraised (if the appraiser is interested in the items, he or she will be tempted to lowball their true worth in order to get them for a good price). You can get references for appraisers from organizations like the Appraisers Association of America: http://www.appraisersassoc.org

Even if you are not willing to put in the time and effort for any these events, there is always a better place than the trash can for most items. Simply load them up in your car and take them to a local charitable organization or the larger nationwide organizations like Goodwill and the Salvation Army. Not only will you be extending the life of the item, your donation will entitle you to receive a tax deduction for it if you itemize your tax return, and that’s certainly better than getting nothing at all.

Copyright (c) 2004, by Jeffrey Strain

This article may be freely distributed so long as the copyright, author’s information and an active link (where possible) are included.

A complimentary copy of any newsletter or a link to the site where the article is posted would be greatly appreciated.

About The Author

Jeffrey Strain has published hundreds of money saving articles and the creator of the Daily Money Saving Challenge Program. He is the co-owner of http://www.savingadvice.com — a website dedicated to saving you money. savingadvice@gmail.com

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Nobody likes to pay banking fees, but if you aren’t active in trying to reduce them, you are probably paying more in fees than you need to be. One of the most important actions to take in order to reduce the banking fees is to figure out exactly how you use your bank. Consider what your average balance will be and how low the balance may dip. Also consider the type of transactions you make and what types of services you need. Once you have a better understanding of how you utilize the bank, you are in the position to get the most out of it while avoiding fees for services you don’t need or use.

Probably the best move you can make is to try and qualify as a member of a credit union. Credit unions are not for profit organizations meaning they don’t have to worry about making a profit. The qualifying factors to join a credit union vary from institution to institution, so you will need to check with each. The good news is that there are a large number of credit unions associated with a wide variety of organizations. Qualifying for inclusion has been broadened a great deal over the years, so it is much easier to find a way to qualify.

Since credit unions are there for their members and not out to make a profit, they are much more likely to offer completely free checking or free checking with a small minimum balance. In most cases, they also charge lower banking fees and their interest rates on accounts are higher. The one big drawback is that they tend to have fewer branches and automatic teller machines (ATMs) than major bank networks which can be costly if you are an ATM addict. You can begin your search to locate a credit union near you at the National Credit Union Administration: http://www.ncua.gov/siteoutline.html

If a credit union isn’t a possibility, then you need to take a look at the different types of banks. While the major banks will have a better distribution of ATMs and a greater variety of services, their fees can be as much as 50% higher than those of local banks. It is also worthwhile investigating Internet banks since their fees still tend to be lower than those of major banks.

Once an appropriate bank has been chosen, reducing the standard fees they charge is an important. Although there are a wide variety of checking accounts offered, most banks will offer at least two typical checking account alternatives. A basic checking account will have a lower minimum balance requirement, but it will usually have restrictions on the number of no cost transactions you are able to make each month. A premium account will usually offer interest and allow for more no cost transactions, but will require a larger minimum balance to avoid monthly fees. Not meeting the requirements of either of these can be quite costly, so it pays to chose the checking account style that best fits your use.

Although an interest earning checking account seems like the obvious choice to make, there are a variety of situations where you’re better off choosing a no interest checking account. If your account balance fluctuates quite a bit so that you are likely to go under the minimum balance required for the account even a few times during the year, you are likely to pay more in fees than you will ever earn in interest. In addition, checking account interest rates are some of the lowest, so choosing a checking account with no interest and a low minimum balance can make sense if you can put the difference into a higher yielding account.

Many people have several bank accounts at different institutions. It sometimes make sense to consolidate them at one bank. Consolidating your banking to one bank can give you more leverage in negotiating fee reductions and allow you to be more proactive in getting the best deals available. If you keep several different accounts at a bank, some banks will take into consideration the total balance of all your accounts at the bank. Although you may not have the minimum requirement in your checking account to earn interest, if you are also keeping a large deposit in a CD account that more than covers the checking minimum, the bank may be willing to count the balance of the combination of accounts as meeting the minimum requirement.

Another option that can give you leverage when negotiating on checking account fees is to have your paycheck direct deposited. Although every bank has its own set of rules, most will waive the checking account monthly fees if you direct deposit your paycheck. Don’t, however, assume they will automatically give it to you. Chances are you will have to politely ask before they offer you this service.

A further possibility in getting free checking is to invest in the bank. Although this doesn’t work with the larger banks, some small to medium sized banks have programs that award free checking and other special offers to investors. All you need to do is purchase a single share of stock to qualify.

Copyright (c) 2004, by Jeffrey Strain

This article may be freely distributed so long as the copyright, author’s information and an active link (where possible) are included.

A complimentary copy of any newsletter or a link to the site where the article is posted would be greatly appreciated.

About The Author

Jeffrey Strain has published hundreds of money saving articles and the creator of the Daily Money Saving Challenge Program. He is the co-owner of http://www.savingadvice.com — a website dedicated to saving you money. savingadvice@gmail.com

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