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There's a fundamental process that, for years, adherents to good personal finance principles have fulfilled.
Doing this helps you track your money, save yourself from overdraws, and better understand where your money is going.
And I've got a secret: I've never done it.
What is it?
Balancing my checkbook.
I remember growing up, watching my mom always balancing her checkbook after she wrote a check or made a deposit into her account.
Even when I wrote checks, I never balanced my checkbook. That was a bad idea.
But now that I barely ever write checks, I don't feel bad about not balancing my checkbook.
I manage my accounts online, checking on a fairly regular basis to see how much money I have in each account.
I've never overdrawn my account, and I've never wondered where my money has gone.
Do you balance your checkbook? Have you ever?
Agreed. I have never balanced a checkbook but have been successful at never bouncing a check or overdrawing my account. Having enough financial cushion is huge as well as setting up an overdraft to a credit card just in case.
Me Neither.
I really dont see the point of balancing your checkbook anymore. In earlier days, the purpose of doign it was that you can account for all your spending. Since the age of checking accounts online, I check them everyday and check the transactions to make sure they are correct. Since its done regularly, the transactions are fresh in your mind.
And, as savingwithme said, credit cards can be used for overdraft protection.