To avoid spending more than what is in your bank account, you can follow these steps:
1. Create a budget: A budget is a plan that helps you manage your money. It helps you track your income and expenses and make sure you don't spend more than you earn. You can use a budgeting app or spreadsheet to create a budget.
2. Track your spending: Tracking your spending helps you see where your money is going. You can use a budgeting app or spreadsheet to track your spending.
3. Use cash: Using cash instead of credit cards can help you avoid overspending. When you use cash, you can only spend what you have.
4. Set up alerts: Many banks offer alerts that can help you keep track of your account balance. You can set up alerts to notify you when your balance is low.
5. Avoid overdrafts: Overdrafts occur when you spend more money than what is in your account. They can be expensive and can lead to additional fees.
6. Plan for unexpected expenses: Unexpected expenses can throw off your budget. It's important to plan for unexpected expenses by setting aside money in an emergency fund.
For example, keeping your accounts at separate banks so that you see only your checking account balance can help you avoid spending more than intended. This tactic also makes it more difficult to quickly transfer from savings if you’re tempted to spend more.
