We solved this problem by opening 2 checking accounts, our main checking which all of our money is deposited into with no debit card This account all of our monthly bills come out of and our checks are written from as well. And then a second checking that we transfer alotted amount of spending money in for the week with a debit card. We each have a weekly budget we are allowed to spend w/o tapping into our main checking account. This money takes in account, gas, food, and other small purchases (ie my husbands ciggarettes and his tea). We really strive to keep all of our receipts so at the end of the month we can see what we purchased and if we need to increase this budget if need be.
We then have a savings account with our savings and overdraft protection allocated 2 the 2 checking accounts. We keep overdraft protection funds of 300.00 in there at all times.
We did this because 4 yrs ago we had someone steal our debit card number and spend 3000 dollars causing our account to overdraft and rack up 360.00 in fees. Thank goodness Wachovia covered everything and we lost. etc..
This was alot of years of practice, and messing up with paying the thousands of dollars. And got sick of paying those fees. We also stopped using mac machines that charge you take out money. My husband was notorious for this and would spend each month almost 80.00 dollars in mac fees. 80*12= 960.00 dollars gone to take out 20.00 each time.
I then came up with this and each month we redo our finances to make sure we are spending savvy.
I have a spreadsheet I keep everything on, and I show this to my husband and he can see as well. Since he doesnt do the bills and has no idea where the money goes.
The key goal is pay your self before paying the bank or anyone else.
In 2005 we spent in overdraft fees apx 1500.00 and 1100.00 in bank atm fees. This was 2700.00 dollars paid to the bank we didnt need to pay.
In 2007 we paid to the bank apx 300.00 to the bank.
Even though it may not seem like it is that much at the time. It all adds up and it is money out of YOUR pocket.
You take that 160.00 x12 and that is 1900.00 out of your pocket. that could haev went into a savings account.
It took me a long time to see what i was doing and why I was doing it and once I started spreading it I saw this and went to my husband and we slowly but surely we turned things around.
