When I enter an amount taken from my checking account either by check or debit card I always enter the correct amount in the ledger but I round up the amount I deduct from the checking account. For example: I write a check for $6.34 and deduct $7 from the checking account.
You would be amazed at how much extra money adds up in the account over a year's time. This insures a cushion so that I never overdraw the account and I am saving money without even realizing it. When the extra in the checking account gets rather high I just transfer some of the money to the savings account.
Each month when the monthly statement arrives you can do a reconciliation of the account to see how much extra money you have. If you wish to use it just add it back into the account.
Source: A friend told me about this years ago.
By Shirl from Williamsburg, Kentucky
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I think this is an excellent idea. The only thing, be careful that you don't get over confident by knowing you have more in your checking account than you actually have (by spending it). I made an error (to my benefit) in my checking account quite sometime ago. While I do balance every month when I reconcile, I never corrected the error. I actually have about $100 more in my checking account than what I show. This gives me a little cushion and overdraft protection that I don't have to pay for. Also, my bank has given me 2 FREE overdraft protections of $25 each should I accidentally overdraw. They gave me this because I have gone 2 years without bouncing a check. I hope you win the tip contest.
I don't round up, but I do have an extra $100 in my checking account that I keep for overdraft protection without having to pay a fee for it. This was do to a mistake (to my benefit) a long time ago and I just never corrected it in my checking account. I do somehow manage to balance every month without fail when I reconcile. I go online EVERY DAY to check my account to make sure I don't forget to record a debit. I use my debit card for purchases exclusively, and I admit it can be tricky to remember to write in each purchase. I keep all my slips in my wallet and once a week I write the slips in (sometimes more often) and every once in a great while I'll forget to post a purchase. But, by going into my account on line, I have less a chance of missing one. If this method works for the person who posted it, why change it. Good for her!
OMG. I'm from the old school. If I'm over or under even .01 cent I have to/need to, find where the error is. I could never do my checkbook the way you all suggest. This is the way I was raised and I suspect I'll probably never change.
I remember once at work, no computers then but did have a calculator, it took me forever finding a .02 error. It was a business and I did find it, actually to the good.
I suggest keeping your checkbook to the pennies and you won't have any worries.
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Whenever you write a check, round up when you record it in your register. For example, if you write a check for $72.35, round up to $73.00. Not only does this make it easy to add and subtract, you will end up at the end of the month with a bit of bonus money. You can keep this in your checking account for a cushion to prevent bounced checks. Or you may put it into a savings account. Or just use it for a special treat you otherwise would not be able to enjoy.
By Kathy Y.
I don't like to pose an argument, but I work in a bank and when customers may have a problem in balancing their checkbook and they use the round up method, it is more difficult to find the error, like if they had forgotten to record a transaction. If you are doing the round up method just be wary in your calculations. (11/08/2004)
By Laura Lange
I agree with luckylange. I know a lot of people who swear by the "rounding up" system. For me I have no clue how they are ever able to balance their checkbooks! This system would confuse me totally.
So in order to have that same "cushion" I routinely set aside $5 or $10 a week to be transferred into savings. That way I have the same cushion that the rounder-uppers have without the confusion in my checkbook. (05/08/2009)
By Cricket
