Overdraft fees, Oh Geez.

      Overdraft fees, what is that? They tend to happen when you use your bankcard to buy something and you don't have the money to cover it. Example: say you have only $75 in your account and you want to buy something that cost $130. So your card doesn't tell say you don't enough money, it just goes through on the purchase, and later you get the bill or you go somewhere else and find out you have nothing on your card. (Sounds lovely right -_-).


       

       On a personal level in my first year of college, I end up spending more money on things I really didn't need for school. Why, did I do something that dumb instead of saving? The answer was simple, after I noticed what changed in my life. I was using PLASTIC (now I don't mean plastic like credit cards, I mean bank/debt card) instead of cash. I was so use to using cash in high school that seeing the money in my wallet helped me save. But now I was seeing a plastic card in my wallet and thought I could use it to buy anything, and so I did. Shoes, clothes, books, food and because I did not live next to the bank, I rarely checked my account. This was the worst. 

       I noticed I needed to stop using my card, when I was charged for an overdraft fee. I had to stop, so I came up with a plan to save my money like in high school. I brought a box and a book, which I would use to keep track on my output and my income (I only work seasonal jobs, so gifts and financial checks are my main income). This is what I did. I used the box to store my receipt, checks, and any paper records of my finances. As for the book, in the beginning of each month I will write...

•   The month and the year

•   The balance in my saving and checking

•   My budgeting goals, (like paying for tithe*, spending under $100 on food and so on)

•   If I purchase anything with my card (I would write down when, how much, and where)

•   and I write down my new balances in saving and checking at the end of the month.

Yea I know that is a lot for some people to do, but I find it helpful if I see it in writing. I just started it, so I will give it till January and see if I see any improvements. My goals for the month of August are simple...

•   pay tithe* every Sabbath 

•   only use my pocket money for purchasing 

•   no debt card usage this month.

I am starting with simple goals because they are easier to reach. So at the end of the month when I reach them all, it gives a more satisfying feeling; instead of making hard goals and only being able to reach one. Well my lesson was learned and I hope this helps others think about budgeting before they get an overdraft fee. ^^v.

*Tithe: is one tenth of one's income. 

"I fast twice in the week, I give tithes of all that I possess" (Luke 18:12 KJV).