If you are living paycheck to paycheck, don’t get discouraged. Over 70% of American’s are in this same situation. As you work to better your own financial situation, remember these seven words to help you avoid losing any of your hard earned money to overdraft fees.
The ‘B’ Word
Budget! The best way to avoid having to pay the bank a fee for overspending is to be very aware of where each penny is going. The bank doesn’t care if you overspend by $0.50 or $50, you will still be charged a fee. Pay attention to where your money is going and what bills need to be paid out of which paycheck. Keep a check register for your debit purchases if you need help keeping track!
The ‘P’ Word
Positive Account Balance! As long as you try to keep a positive amount in your account at all times you won’t be hit with fees. To make this easier, make $100 the new $0. When your account starts to get close to $100 stop spending as much as you possibly can. Rely on food storage, walk or use public transport, say no to different events.
The ‘F’ Word
Fees! Remember that the fees at each back are different. Find the best bank that offers the lowest overdraft fees. Compare online banks with other banking institutions to find the best bank with the lowest fees.
The ‘A’ Word
Automatic Bill Pay! If you struggle keeping track of when bills need to be paid and paying them out of the right pay check, find an account that offers automatic bill pay. You can set up your bills to be paid at the right time so not all the bills are coming out of one check.
The ‘C’ Word
Cash! You won’t be charged any overdraft fees for using cash. Cash makes it easier to say no as well because if you don’t have the cash, you don’t have the cash. Don’t think you can overspend on your account and then just pay the fee. That is a horrible habit to get into and a great way to waste money. Just withdraw the money from your account and use the cash instead of a debit card.
The ‘O’ Word
Overdraft Protection. The best banks offer checking accounts with a savings account to act as overdraft protection. If you overspend on your checking account, the bank will pull the money from your savings account to cover the cost. You will still be charged a fee, but it should be less than it would be without the protection.
The ‘M’ Word
Mobile Banking! Find the best bank that offers mobile banking. You can sign up for texts or emails when your account is getting low. Plus you can keep an eye on your total funds and transfer money if necessary.
These are simple ways to make sure you keep track of your money and don’t lose any to something avoidable like bank fees. Find the best bank with a bank account that works for you and take control of your finances.