How I Stopped Bouncing Checks

As the recession continues and families are fighting to keep a roof over their heads and food on the table, banks are making more and more money. Trying to pay for everything can make the checking account a little short at the end of the month. Bouncing checks, because you are trying to beat Peter to the bank is not the answer. When I took a step back and tried a few new ideas I was able to get my checking account out of the red and stopped giving the bank to much of my hard earned money.

The first thing I did was stopped my direct deposit. Every two weeks I go to work and pick up my paycheck. I then go to the nearest Wal-Mart and cash my check for $3.00. Some people may think I am wasting $36.00 a year by doing this. I personally look at it that I am saving money, by not paying the bank a hundred dollar or more each paycheck. Since I started this one change I have not paid any extra money to my bank.

After bringing home my check, I divide all the money up and place it into envelopes. These are marked for bus fare, groceries, cell phone bill, etc. This money is used only for the items they are marked for. Once it is gone, then it is gone. All bills that need to be paid the cash is placed into the perspective envelope until I am able to either physically pay the bill in person or get a money order. This also prevents me from thinking that I have extra cash to spend.

I pay my bills a few different ways, depending on my schedule and what is works best for me. I either physically go to the place that I owe the bill to or get a money order. By doing this I am not writing checks that seem to bounce more often than not. Mainly because I have a terrible habit of not writing things down. Using the money orders to pay bills means the money is gone, I can not "accidentally" decided not to mail the payment or use the money on other things.

I know longer use my check card for anything other than paying bills online. When I do use the card, I have already physically deposited the money in the bank. I only deposit the amount of the bill. I do not use it for everyday purchases since in the past this is what has gotten me in trouble. I admit I am not good at writing down each transaction so I just stopped using it. Also by not using the card, I can actually see the cash that is leaving my wallet. Knowing I only have so much cash till next payday, has made me think more of what I am spending.

Since I started using cash, not writing as many checks and put my card into retirement. I have a better handle on where my money goes. I also have not bounced a check. I no longer worry when I get a letter in the mail. I have been able to pay my bills on time and feed my family.