In my previous post, “Can You Spare Some Change,” I talked about saving your change when you use cash.
At one point in my life, I decided to only use my checking account to purchase anything or to pay bills. I went cashless. A few things happened because I decided to do this. The first was that I could only go places that would take a check. The second thing was that I was careful about what I was buying because I did not want to write countless numbers of checks for $5.00 or less. After all, I was paying for checks on top of it.
I also decided to start dropping the change on checks. What I mean by that is that every entry in my check register was rounded up to the next whole dollar. If you read my post, “Can You Spare Some Change?” you will recall what I did with change when I was only using cash. By rounding up to the next whole dollar, I was effectively doing the same thing with my checking account.
This method is a little strange though. For most of my life, people have told me about how I need to keep track of every cent in my checking account in case the bank has made a mistake or if someone had gotten ahold of my account information and was writing checks that I had not authorized.
This method will not work for everyone. If you are going to use this method, then you have to be able to take the time each day to update your information. If you can do this, then you will know exactly what the difference is between your check register and the amount that is actually in your account.
Within two months, you will more than likely have at least $10-20 extra in your checking account that is not accounted for in your register. If it is getting close to payday and my funds are running low, I can feel secure in the fact that there is extra money in there. I typically keep about $150.00 in the “slush fund” at any given time. I will talk about what to do with it next time.