Don’t be tempted by the available bank balance you see when you log into your bank account.
What you see is not automatically what you can take, and doing so could result in a nasty surprise.
My Story
Ages ago, when my niece was young, she went to an ATM to withdraw some cash.
Being young, she checked her available balance, withdrew what she needed, and went happily on her way.
What followed were a series of nasty surprises that eventually cost my sister a few hundred dollars to remedy.
What my niece didn’t realize is that the available balance shown by your bank is hardly ever the balance you should assume you can withdraw.
There are a few things to consider prior to assuming that the balance you see is yours to take.
Let me first state, I will forever be an advocate of keeping a check register.
That said, I know only a handful of people who do so.
If you don’t have an actual check register, some mental mathematics will be required.
Before you withdraw from your available balance, mentally deduct the following items.
Outstanding checks
Even now, many of us still write the occasional check.
Don’t ever assume a check you wrote weeks ago has cleared.
A check can be held by the recipient for up to six months.
Unless you see definitively where it has cleared your account, mentally deduct that amount from your available balance.
Scheduled Payments that Haven’t Processed
Payments made online do not immediately clear your account.
Online payments can take a few days to post to your account.
If you’ve recently made an online payment, and it’s not showing up in your account, mentally subtract that from your available balance.
Automatic Withdrawals
Setting up bills to pay automatically makes life so much easier.
The downside is that you have to ensure the funds are available.
If you are looking at your available balance before an automatic withdrawal is scheduled, mentally subtract the withdrawal.
Current Needs
In my humble opinion, this is the biggest consideration of all.
How much money needs to remain in the account for gas, groceries, and spending, until your next payday?
Subtract that amount.
Only after the mental mathematics has been completed should you proceed with making a withdrawal.
Although the available balance shown by the bank is tempting. Don’t be fooled.
It’s an illusion and not yours for the taking.
And while that can be discouraging, dealing in reality is much better than mopping up the tears from multiple thirty-five dollar overdraft fees.
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