Having to pay overdraft fees on a regular basis is a sign that you need to simplify your personal finances. Seeing those overdraft fees charged to your account tells you that you are not managing your finances properly. Making some minor adjustments to your finances can help you prevent those overdraft fees as well as help you simplify your finances.
Here are some tips to help you avoid those overdraft fee:
Pay with Cash - this way you only have to monitor your cash withdrawals. Suggest withdrawing enough for your weekly expenses. This eliminates the need to keep track of every debit you may take out. It also let you know there is no money if you don’t have any more cash.
Set alerts on your account – this lets you know your account has reached a minimum balance that you have established and you need to either make a transfer or deposit.
Set up overdraft protection on your accounts – in case you forget to make that transfer having overdraft protection will make sure you are not charged the overdraft fee and your check or debit is covered.
Use credit cards instead of debit card – only suggest if you will pay off your credit card off at the end of the month. Using a credit card will eliminate the need to monitor your account balance daily because you will have less activity in your deposit account.
Monitor your account balance regularly with online banking – this will enable you to know what transaction have occurred and how much is in your account.
Establish an account buffer – this provides some room for error if you forget about a transaction or forget to make a transfer.
Take some action now by implementing at least one or more of these tips to help you avoid those nasty overdraft fees. By implementing one of these tips you will save enough to have a nice dinner at the end of the month. Considering overdraft fees can cost you as much as $35 per occurrence. Just two fees will equal a nice dinner and a movie. So be sure to take action now it could lead to nice end of the month date with your loved ones.
Til next week take one step at a time to simplify your personal financial life.