Learn How to Balance Your Checkbook

With the increased use of debit and credit cards along with budgeting software on the personal computer, the art of balancing the checkbook is fading away. In the past, keeping track of your money came down to the checkbook, but more often than not, you're simply logging into your bank account online or manage your money through a piece of financial software. Even if you do, it is still important to keep tabs on your money, either via your checkbook, or reconciled in your software.

People who fail to regularly balance their checking accounts tend not to notice bank errors, which do occur, albeit rarely. More commonly, non-balancers tend to find themselves overdrawing their accounts, incurring hefty fees in the process. And they find themselves unable to say with any assurance whether they can afford to write a big check at any given point in time, whether it’s to pay a large bill or to make a large purchase.

If you do keep your account balanced, you're much more aware of the state of your finances and can make sure you only spend money that you have, and catch any errors that may occur. Here are a few simple steps to help you balance your checkbook regardless of the method you use.