Here’s how it begins.  You open a checking account.  You’re given a checkbook, a check register and a debit card.  Then you’re sent off into the fast paced world of spending.

For someone that’s not had to manage an intangible object such as money in the bank, keeping track can sometimes seem overwhelming.  If you want to achieve that Master of Household Management title, I’ve got two basic rules to share with you of which I hope you will make a mental note…

“Rule No. 1: Never lose money.  Rule No. 2: Never forget rule #1.” – Warren Buffet

The confusing part about having a checking account is the use of two systems tied to one account – checks and debit card.  Not only do we have to keep track of the checks that we write, but we also have to make sure we write down the ATM withdrawals and debit purchases made.

In a quick rush, we’ll make a purchase or withdrawal and will forget to write it down at that moment or will tell ourselves that we’ll make a note of it later.  Well, later never comes.  We forget all about it and lose track of what we actually have left to spend.  Keeping track is a little easier now because of online banking, but there are ways to work smarter – not harder.

My advice:  Make a note in your check register as soon as a purchase or withdrawal is made.  I know it’s easier said than done, but you’ll be amazed how starting a new habit will improve your flow of life.

Another tip:  The use of the “duplicate checks” feature offered by check printing companies.  I don’t write many checks, but with the few that I do write, I always have the carbon copy of who the check was written to and the amount.

The Balancing Act

I’ve heard many reasons around this task, but I believe it should never be overlooked – reconciling or balancing your bank account.  This is a basic task of comparing your check register to your bank statement for a specific period of time…usually monthly. I know it seems tedious, but there are several benefits:

1. You avoid overdrafting your account.
2. It’s a great way to find any errors made by you or your bank.
3. You can uncover unexpected bank fees.
4. Unauthorized withdrawals or charges are discovered quickly.

So for now, the pros far outweigh the cons to balance your checkbook monthly.  When it’s all said and done, I’d rather walk around with the comfort in knowing that the amount I want to spend is actually in the bank.  No more guessing game!

If you are already doing a great job of keeping track of your purchases/withdrawals, this message can be considered as a reminder to keep up the good work.  If you’re a veteran checking account holder and haven’t been following these principles, I urge you to take a few extra moments to start today.

Yes, I understand that you’ve been doing it this way for years, but I promise you won’t be disappointed trying it this way.  I’ve heard that it takes 21 days to create a new habit.  If you start today, you’ve only got 20 more to go.  We don’t want Mr. Buffett to be disappointed!

So what do you do?

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No one likes to go through life and keep making the same dumb mistakes over and over again.   If you made that mistake once, why in the world would you do it again?  Most times it’s because of familiarity and ignorance.  A person only does what they know how to do. 

Well, a lesson is defined as a useful piece of practical wisdom acquired by experience or study.  That is experience from your own life or learning from the results of others decisions.   We should always be in a consistent mode of learning as well as growing.  I don’t know about you, but I want to be a better person than I was yesterday, last month or last year. 

Learning can come in all sorts of formats.   One of the best sources of learning can be from people – those who have already “been there and done that.”   They often inspire us through writing books, quotes, giving seminars or just casual conversation.  That inspiration becomes engraved in our minds and gives us the sharp boost we need to make positive changes in our lives.

My favorite method of inspiration is reading quotes.  It’s amazing how a few words put together can be so powerful.  I’ve included a few below that have inspired me and the lessons I’ve applied to my own life.  Enjoy!

People who make money often make mistakes, and even have major setbacks, but they believe they will eventually prosper, and they see every setback as a lesson to be applied in their move towards success.  – Jerry Gillies

The Lesson: Never view a mistake as a failure.  We must see them as opportunities to learn, grow and expand our current knowledge.  Isn’t that what life is all about?  Everything we go through in this life is for a reason.  It’s up to us to sit back, reflect and ask the lesson, “What are you here to teach me?”

Some people prosper when times are challenging, and some people never do, even in good times.  Some people endure serious personal financial storms and come out stronger than ever before; others get swept away.  The difference is this:  Those who do well in both good times and bad times manage their money from a different position. – Suze Orman

My financial life began turning around when I took responsibility for it. – Dave Ramsey

The Lesson:  Learn to manage money from a position of control.   We spend so much time away from our families earning a living, don’t let it be in vain.  Don’t earn your money and then passively let it get by you without knowing where it all went.  Two questions…Victim or Victor?  Which one will you be?

Living from paycheck to paycheck, has little to do with the size of the paycheck.  Write down how you will spend (or save) your next paycheck—every single dollar of it.  Become a skillful manager so that when more money flows into your life, you’ll know where to put it for the greatest benefit.  – Mary Hunt

Thou hast been faithful over a few things, I’ll make you ruler over many. – The Bible (Matthew 25:21 – The Parable of the Talents)

The Lesson:  We have to live WITHIN our current means and be responsible with what we earn.  You can’t say, “Well when I make more money, then I’ll learn to manage it.”  How can that be?  History tends to repeat itself, unless a change is made.

Humanity is now faced with a stark choice: Evolve or die… If the structures of the human mind remain unchanged, we will always end up re-creating the same world, the same evils, the same dysfunction. – Eckhart Tolle

The Lesson:  The explanation that Eckhart Tolle gives about the evolve or die statement is that it’s not always a literal death.  Whether we know it or not, we can be physically alive, but consciously dead.  I learned to “live” through doing better and being better on a daily basis making new waves as I go along.

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Our lessons can be hard pills to swallow at the moment it’s being taught, but if we change the focus and really “learn” then we end up in a much better position.  What lessons have you learned recently and what was your inspiration to overcome?

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