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Do you know
exactly how much money is in each of your bank accounts at this moment? Is it important to you to know the difference between
the Balance your bank currently shows and how much you really have available to spend?
Too many of us only
have an "approximate" idea of how much is in our checking account. This can become a major source of stress. Today it is easier
than ever to gain the peace of mind that always having this information at hand can bring us.
The first step
toward a balanced checkbook is to use duplicate checks. These marvelous checks save time as there is no need to copy the check
information into a transaction register, or even keep one.
Get into the habit of filling in the Memo section
of your checks. This information will prove invaluable later on if you choose to categorize your expenses.
Similarly, when using a debit or credit card, always write a few words detailing your purchase on the receipt. The best
way to make sure you never loose a receipt is to immediately put it into your wallet, rather than letting the sales clerk
stuff it into the bag.
What I like to do is flatten out these folded receipts by putting them under a
paperweight or stapler so they stay in a neat pile.
Take out your duplicate checks, latest bank statement
and computer. You now have all the information necessary to plug into a wonderful computer program called Quicken.
Quicken is primarily an electronic transaction register in your computer that automatically keeps a running balance
of how much money you have in your bank accounts.
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Click on Reconcile and a box pops up for Opening
Balance, Ending Balance and any Service Charges or Interest Earned from your bank statement.
Click OK and
you'll see a list of checks and debit card charges to the left and deposits to the right. Click on the items that match up
with your statement and a bright green check appears next to it. It is actually fun to do this in Quicken!
As you proceed, you'll see your Ending Balance changing. If you have carefully entered all your transactions, once everything
on your statement is checked off, your opening Balance and Ending Balance should both read $0.00.
Your are
done! It's that easy.
Set up on-line
access for your bank accounts and you can compare how much is in your account at the moment with a Quicken view of your actual
available funds.
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