Managing the money in your bank account

Category : Managing Money

Managing money is not an easy task, especially if you never have enough of it. But not managing money can be even worse, if you find yourself spending what you don't have.

With the wide range of payment methods available and the temptations to spend on credit, it is easy to lose track of your finances by spending on things which are not a priority.

Here are some of the reasons people end up buying things that aren't a priority:

the assistant is friendly or helpful and so you feel like you should buy something; you enjoy, or are so numbed by the experience of shopping that you do it for its own sake almost as a ritual; shopping in a group is a social activity and makes you feel part of things; you desire things so much that you forget whether they are actually a priority use of your money; you may find you can get credit and that this somehow makes you feel you have lots of money to spend.

The golden rule in managing finances is to monitor your spending. Here are some suggestions for managing your account:

As you spend keep the receipts (this includes cash machine and till receipts.

Always get a receipt from the cash machine.

Make a note of all cheques you write.

Keep a record of all the Switch or Delta payments you make.

Watch your standing orders and direct debits.

At the end of every month tick off your payments against your standing order to confirm what you have spent.

Always check your bank statement carefully. Mistakes are surprisingly common.

The following points are adapted from 'A Student's Guide to Better Money Management' published by Credit Action an organisation which aims to help people manage their money better.

To manage your money well you have to be completely honest with yourself. It is no good 'forgetting' how much money you spend in the pub or on magazines every week. These smaller amounts can add up and you may be surprised how much you actually do spend when you keep an eye on them.

If you have regular money coming in (for example a benefit payment, income from work, or a student grant), try and plan how you will spend it over the period it is to last for. Don't be tempted to spend it all at once.

Spend sensibly, remember that tomorrow's need is more important than today's want. To help plan your spending, write out a weekly or monthly budget plan.