5 Steps: Facing up to Your Bank Balance!

"I don't want to look at my bank balance" is something often heard around young people. But it's not just young people who struggle to check. Only 65% of adults check their bank balance each week. So how can the other 30% do this and why is it important anyway?

Knowing what's your bank account is going through is important. It helps us avoid things like:

• Overdraft charges
• Being unable to pay rent/bills on time
• Having to borrow money
• The scary world of payday loans
• Being in debt

It is well-known that people in debt suffer from more stress, which can lead to things like mental health problems, high blood pressure and a weaker immune system. The more problems you have like this, the more money you need to spend on travel, time off work etc., and it becomes a cycle.

So how can I make this less painful?

It can be hard to check your bank account. Seeing a low number leads to feelings which a lot of people would rather avoid, at least for the time being. But the more you are on top of your bank account, the more you can avoid feelings like dread and anxiety. 

Putting off checking leads to more of these feelings, and although feelings are very valid and ok, it is best to try and foster positive feelings, like empowerment and gratitude. So start today if you can. 

Practical tips:

1) Calculate in and out-goings.

So you've decided you're ready to check. First it might be a good idea to get a sheet of paper and write on the left your 'in' payments, and on the right your 'out' payments. It is a good idea to do this for a month worth of commitments. If you are a student, do this as your student loan arrives and calculate for the term.

You can also see whether medium term you need to look at increasing your hours at work to sustain yourself, or whether you are working enough that you can save some money.

2) Get comfortable.

Personally I like to do this in a coffee shop or somewhere similar. Somewhere where I can have a cup of coffee in hand as I sort things out. I also like to give myself a lot of time for this, and print out a statement from the machine at the bank, so it's current.

Take a deep breath, remind yourself that everything is ok. You are safe. You are supported and you have people who will support you and look after you. If you don't have anyone or are going to really struggle, there are always options of some kind. Keep reminding yourself of this. Repeating an affirmation in your mind can help, such as 'I am supported'.

3) Take a look

Then, when you feel safe and supported, have a look at your balance. Be prepared for any feelings that might come up. They are all valid. Even if it's excitement because you have more than you thought. If you feel sad, give yourself a minute to process it. Ground yourself to keep yourself in the situation. This is something you can cope with.

4) Adjust your spending

Calculate how much money you can spend per day, when you've taken out rent, bills, food and all other essential things. You may choose to include travel in this if you get the bus a lot. Be realistic at this point. If you know you get the bus, incorporate it in your essentials budget. If you get a cup of coffee every day, don't pretend you don't - add it to the budget!

Then calculate your left over money for the time period, and divide it by the number of days so that you have a set amount per day you can spend. This might be on social plans, birthdays, snacks, e.t.c. Now write it down clearly, and put it up somewhere - maybe your fridge or a notice board.

If you find that you do not have much money left to do things, consider cutting your essentials budget. For instance, could you walk to work instead of getting the bus? Could you cycle? Calculate the feasibility of different options and see. You could also look at things like buying cheaper foods or shopping at a different supermarket.

Here you could also look at borrowing more money if you need to, or paying back your overdraft gradually. You could also think about longer-term things like cheaper accommodation.

5) Congratulate yourself

It's important to acknowledge that you've just done something really difficult! Treat yourself with your money for that day. Having been at many places on the spectrum, I'd recommend a DVD from CEX or craft materials from Poundland if you're at the low end. You'd be surprised where you can cut costs but still be treated!

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Now enjoy your new feelings of empowerment about your money budget, and feel grateful for how much better you feel now that you're on top of things. If you're feeling inspired having read this, let me know by sharing, commenting or liking the post!

Image 1 source here
Image 2 source here