How to Balance Your Checkbook - Get a Calculator and Pencil and You are Ready To Go!

Despite how easy it is to balance a checkbook, very few people take the time to do it and the few who do, don't always do it the right way. If you write down in your checkbook ledger what should be deducted and added, you are on the right track - if not, start there and follow these nine easy steps to a balanced checkbook. Once you are comfortable with these nine steps, it is possible to balance your checkbook each month within 30-45 minutes.

9 Steps

• Make sure that all deposits, withdrawals (maintenance fees, ATM fees, and automatic payments) are added and subtracted and calculate the balance as of the last transaction made.
• Keep all check-card receipts, duplicate checks (or returned checks from the bank) and withdrawal slips until you sit down to balance your checkbook.
• Mark an "x" in your checkbook by each transaction that has gone through the bank. It is easy to do once your statement arrives and you can put all checks in numerical order and easily check them off.
• Do the same thing with any ATM withdrawals or check-card purchases.
• Make any adjustments necessary to "true-up" your ledger and comparing deposit slips and purchases/withdrawals. *If you notice any discrepancies between your records and the bank's - give your bank a call.
• To calculate your balance write down your checkbook's current balance at the top of a piece of paper (normally the backside of your statement will have a worksheet to complete for this task).
• Subtract any amounts for un-cleared deposits and bank fees such as monthly fees or for any insufficient funds charges.
• Add any un-cleared checks and the interest you have earned to this figure.
• Finally, compare the final figure that you have to your bank statement - they should match.

With very little effort, it is easy to keep track of expenses and stay out of trouble with your bank. Balancing your checkbook is very important because you will avoid overdraft or insufficient funds fees due to bouncing checks because of not knowing your balance. In addition you will protect your credit and verify that your financial institution has made no mistakes. You'll also be able to keep better track of cash flow and manage your money with far fewer headaches and surprises.

If You Can't Get Your Checkbook to Balance; Try These Tips!

From time to time, everyone records something wrong or adds incorrectly - and a few easy tricks make it easy to find that error.

• Verify that the dollar amount of the items entered in your ledger matches with the dollar amount of the items on the bank statement.
• Compare ledger and deposit slips with your statement.
• If the error is a whole number, check your addition and subtraction again.
• If the number is divisible by nine, you may have transposed figures ($63 recorded instead of $36).
• If the balances still won't match up and you can't find the problem, make an appointment with your bank to figure out the problem. Most banks offer help complimentary or for a nominal fee.

Here are Some Helpful Hints to Stay in Balance

• Review your checkbook register regularly to ensure that you've entered in all transactions.
• Enter the name of the payee and the amount in your ledger when you write your check instead of waiting until right before you balance it.
• Place decimal points exactly where they should be to avoid calculation errors.
• Keep all ATM, check-card or deposit/withdrawal receipts together until you are ready to balance your checkbook.

Robb Ksiazek is a successful author and publisher for Checks-4U.com. He has researched and written hundreds of articles and can simplify your online search by recommending merchants for the best value and selections in business or personal checks, address labels, rubber stamps and envelopes.

04/25/2024 Insurance - NerdWallet Looking for the cheapest car insurance? Want to find the best home insurance policy? Wondering what type of life insurance you need? We’re here to help. Compare companies, read reviews and see our best picks — all on NerdWallet. more info

04/25/2024 Travel Money Hub: Loyalty Programs, Cards, and More - NerdWallet Dreaming of a vacation? We've got the tools and tips to help you compare and find the smartest travel credit cards and loyalty programs. Future you will thank you. more info

03/26/2024 New Robinhood Credit Card Will Earn 3% Back on Most Purchases - NerdWallet The Robinhood Gold Card won't have an annual fee, but to get the card you must be a Robinhood Gold member, which costs $5 a month as of this writing. more info

03/26/2024 3 Ways AI Could Transform Your Insurance Policy - NerdWallet As insurers use artificial intelligence to make better predictions, AI technology could spur major changes for insurance customers. Learn more about what to expect. more info

03/26/2024 Taryn Phaneuf, Lead Writer - NerdWallet Taryn Phaneuf is a lead writer at NerdWallet. She previously spent more than a decade reporting on business, education and public policy for local news outlets. more info

03/26/2024 Financial News - NerdWallet NerdWallet reporters bring you the latest in financial news, with a focus on what it means for your wallet. more info

03/26/2024 Lottery Pool? Take These Precautions Before Diving In - NerdWallet A lottery pool can be a thrilling way to socialize with coworkers. But if luck strikes, the stakes can be a lot higher. Here's how to avoid legal tangles. more info

03/26/2024 Latest FAFSA Error Affects Aid for 200K, Offers for Everyone Else - NerdWallet The Education Department miscalculated the financial need of roughly 200,000 dependent students who submitted FAFSAs before March 21 — nearly 15% of processed forms. Those students could get less aid than they expect, and everyone else might face further delays. more info

03/26/2024 What’s at Stake as the Supreme Court Hears an Abortion Pill Case? - NerdWallet The U.S. Supreme Court is hearing oral arguments in FDA v. Alliance for Hippocratic Medicine, a case that could limit access to mifepristone. more info

03/26/2024 Best Balance Transfer Credit Cards of March 2024 - NerdWallet Save money while getting out of debt by doing a balance transfer: Moving debt to a card with a 0% introductory interest rate and low fees. more info

03/26/2024 Best 0% APR and Low Interest Credit Cards of March 2024 - NerdWallet Using a credit card with an introductory 0% APR period can save you big money when financing a major purchase. See all of our expert recommendations. more info

03/26/2024 Best Cash Back Credit Cards of March 2024 - NerdWallet Cash back is the most flexible credit card reward, since you can use it for anything. Our list will help you find the perfect card for the way you spend. more info

03/26/2024 New Breeze Airways Credit Card Takes Flight With Up to 10X Back - NerdWallet Airline also launches Breezy Rewards, the airline’s loyalty program, which supercharges rewards earned with the credit card. more info

03/25/2024 Buying Life Insurance if You're Transgender - NerdWallet Your gender identity doesn’t impact your eligibility for life insurance, but there are a few things to be aware of when you apply. Learn more now. more info

03/25/2024 Egg and Chocolate Prices Are Hopping — Just in Time for Easter - NerdWallet Bad weather and disease are straining the supply of cocoa. Meanwhile, another outbreak of bird flu is pushing up egg prices again. more info

03/24/2024 Jae Bratton, Lead Writer - NerdWallet Jae Bratton is a writer on the credit cards team at NerdWallet. more info

03/24/2024 Mega Millions, Powerball Jackpots Near Combined $2 Billion - NerdWallet The Mega Millions jackpot is now $1.1 billion, while Powerball has grown to $865 million. Mega Millions will be drawn on Tuesday night; Powerball on Wednesday. more info

03/23/2024 Government Shutdown Threat Finally Put to Rest — For Now - NerdWallet Congress missed its midnight deadline, but shortly thereafter approved the final set of appropriations in a $1.2 trillion spending package. The last-minute deal prevents a government shutdown that would have furloughed government workers. more info

03/22/2024 Alaska Access: The New Subscription Service from Alaska Airlines - NerdWallet Like its existing Flight Pass subscription, Alaska Access could be a good deal for frequent Alaska flyers looking to get the best deals with the airline. more info

03/20/2024 American Airlines To Add Streaming and Free Wi-Fi - NerdWallet American Airlines says it will be the first airline to offer video streaming capabilities on its entire mainline fleet. It is also offering free Wi-Fi with ads. more info

03/20/2024 Fed Chair Powell: Rate Cut Risks Are ‘Two-Sided’ - NerdWallet For the fifth time in a row, the Federal Reserve paused the federal funds rate at 5.25%-5.50% as Americans continue to wait for lower rates to cut costs on mortgages, credit cards and other loans. more info

03/20/2024 Tailpipe Emission Rules Give Automakers More Time to Ramp Up EVs - NerdWallet New stricter rules for vehicle emissions are expected to roll out more slowly than initially proposed last year, which gives automakers more time to beef up electric vehicle stock. more info

03/20/2024 Powerball Hits $750M as Mega Million Jackpot Nears $1B - NerdWallet The estimated Mega Millions jackpot is $977 million, while Powerball has grown to $750 million. Drawings are Friday and Saturday respectively. more info

03/18/2024 How Is the Economy Doing? - NerdWallet The state of the economy is generally strong and inflation is slowing down, but still remains elevated. The Federal Reserve is looking at key economic indicators to signal it’s time to cut rates. more info

03/18/2024 Caitlin Mims, Content Mangement Specialist - NerdWallet Caitlin Mims is a content management specialist on the credit cards team at NerdWallet. She has covered credit cards, credit scores and retirement planning. more info