Money is a complicated thing. Often, people spend all of their time trying to ensure that they have as much of it as possible, but they forget to check what happens to their money after it lands in their bank accounts.
Though it’s easy to assume that the money in your account is safe and secure, it’s often a good idea to make sure that you keep track of your spending. After all, there are so many ways that you can lose sight of your cash. From dangerous crimes such as fraud to payments that you don’t know you’re making and even accidental spending, here are a few reasons why you should always watch what’s going on in your account.
Do you know all the payments that you’re making?
If you had to sit down and make a list of all the things that you spend money on each month, would you be able to? A lot of people have a general idea of where their money goes after every pay cheque. For instance, most of us are constantly spending cash on rent or mortgage fees, gas and electric, water rates, car insurance and more.
However, there could be money going out of your bank account that you don’t know about. For instance, when you applied for a loan, you might have been charged Lloyds PPI without realising it, leading to an extra drain on your finances. Alternatively, a service that you’ve used for years could suddenly change its terms and start charging you extra for things that you don’t need. Make sure that you know exactly which payments you’re making and why.
Are you protected from crime?
All people like to imagine that theft and crime will never actually happen to them. Unfortunately, the truth is that everyone is vulnerable to crime. In the highly connected digital age, it’s easier than ever for hackers to gain access to your personal information by working their way into your online accounts and email folders.
As fraud, hacking and cybercrime become increasingly common, keeping an eye on your bank account and where your finances might be going is crucial to protecting yourself and your family. After all, if you can spot a fraudulent withdrawal instantly, then you can take action to stop a criminal before the problem grows too severe.
Managing your money isn’t always simple
Even the most cautious spenders have problems with their finances from time to time. It’s easy to assume that you have more money in your bank account than you think or make an extra purchase at the end of the month without realising how much you’ve already spent. However,, being unaware of your current balance can be dangerous. Not only could you deplete your savings, but you could also enter overdraft territory, which means that your bank account provider will start charging you interest that you can’t afford to pay.
By keeping track of your money on a daily basis, you can make sure that you’re defending yourself from everything from accidental overspending to fraud.