Personal Finance Tip of the Day

It's really quite simple. Each month you are sent a statement. And each time you have used your ATM/debit card or written a check, or made a withdrawal, you have been writing down every single deduction from your account and every single deposit, and all fees. Start by circling the amount of the current balance on the statement. You will need this number later. Next, go through each line of the statement, and write a little mark next to the same corresponding item in your register. Circle anything that is in your register, but not on your statement. Some of them are checks written, but not yet presented to your bank, deposits not yet credited, etc. Now, remember the number you circled above, your current balance?

Take this number, and subtract from it all of the checks and debits in your register that did not show up on your statement. Add all deposits that also have not yet shown up on your statement. The final number should equal what you have in your account.