Financial Workshop: Fair and Balanced

I've been told by more than one person that it is difficult to balance a checking account.   As such, I must accept the fact that more than one person has been intimidated by the task.  In urging people to take control of their finances balancing that is a necessary step.
Simply put, balancing your account is a way of knowing what is exactly taking place with your account.  For those of you using the ledger in your check book to track transactions, you'll need to compare your record with the listing on your monthly statement.  Hopefully you have already been making notations for all the transactions you have done, checks, point-of-sale purchases and deposits.  By comparing your records with those on your statement  you validate your records and ensure accuracy.  If you find a missing transaction  it is just an addition or subtraction problem.   When you have accounted for all the withdrawals and all the deposits your account records will match those on the statement.  Now you know what is available to you.  
An even better method is to track your finances on a personal computer using Microsoft money, Quicken or Quickbooks.  I mention these programs because they are readily available on most computers, and are fully compatible with online banking systems.  Tracking with a computer is convenient simply because it does the math for you (which is often where mistakes come from).  When reviewing your banking online you can verify transactions at anytime to keep the account up to date.  Some banks even provide for a way to go paperless at a discount.
Either way, you are now monitoring your account activities and developing a good habit of knowing what your money is doing for you.  Knowing that is going to make you conscious of where your money is going.  Your money tool now has direction and you are on the right track to controlling your finances.

Financial Workshop: Know what you got....

Step one in managing your accounts is simply knowing what you got.  Take an inventory.  Do this so that you can get your financial bearing.  Unfortunately people fail to start with the very basics.  Too many people have money come in and go right back out.  Make it work for you, for the little time that it visits.  First, monitor your checking account.  If you don't have an account, get one.  Yes, I know banks charge fees, but that is because they provide a service, like a barber or a gas station.  Chose wisely, not everyone needs a bank that has a branch in Turkey.   Once the account is established, balance it.   Balancing an account does three things: it helps you to know exactly  what is in your account, it verifies transactions to minimize fraud, and helps you to monitor your spending patterns.  Balancing you account is simply comparing your records with the statement received from your financial institution.  (If you need hep in this area contact someone you trust or you may contact me directly for simple steps to get it done.)  You should be getting and keeping your monthly statements.  Take some time this week to review your records and make sure your tool is working for you.

Financial Workshop: The series

Money is a tool and some people are better at using it than others.  Fortunately, a tool can be learned and eventually mastered.  Banks, accountants and investment firms all make their services available to those already blessed with significant assets.  In a way, I guess that is fair, after all one does not need  a shepherd when you only have one sheep.  The problem with this is the flock will never grow beyond one sheep. 
People with money have more money and those who don't are never given the opportunity to learn effective ways of managing and growing  their assets.
It is my hope that a few hints and guidance can help turn the tables.  As I said, money is a tool and I am tired of watching people struggle to manage it.  Once a week, I will present information on managing money.  It is my hope that it helps those people who always said I can can't afford an accountant and don't have enough money to invest.  It is also my hope that those who are reading this provide input and commentary in order to meet needs, answer questions and ultimately change lives.
Please be sure to read the Monday Update for the first step in mastering the money tool.