With so many new options for paperless bill paying lots of us refuse to mail checks anymore. Even though the majority has shifted to this new online method of payment, there are those who cannot get past the checkbook. For some it is a better way and easier to track; it all depends on your individual situation. In order to fully organize your financial life you have to acquire more than just a regular budget, you have to balance your whole system.

The “system” is the way that you pay your personal, and household, bills. And as I said, the only true way to balance your own system is to have all of the ducks in a row. In order to correctly implement a household budget you have to know where your money is, how much is being used, and how to properly track the “limbo” transactions.

We all know those transactions that get missed because the receipt went missing or the cashier forgot to hand one to you. These are the ‘limbo’ transactions that stick us in an unmistakable overdraft hole. The point of budgeting is to clear up these little messes and fully prevent their occurrence. That’s not fully possible when your checkbook (checking account) is backward and upside-down.

You must start with first-things-first. Devise a plan for organizing your payment methods. If you have a habit, like I do, of using debit cards for just about everything then it’s time to run to your word processor for a little creating-time. If the checkbook is your downfall you still need to do the same thing, get in front of the computer. You have an obligation to your finances to get this figured out.

You need a simple blank sheet pulled up in your word processor. Get your checkbook, whether you use it or not, and by taking a glance at the sections in the check book-balancing book begin inserting lines to create the amount of sections you will need. The basic idea is create enough sections for “Purchases” to easily cover a full days worth of spending; 10-15 individual sections for ‘Purchases’ should be enough for the average person. Then you want to add top sections for the Store/Company, Amount Tendered, Debit/Check, Money Back, ECT. You need to be “in the know”! This is your life. The more convenient the sheet is, the smaller, sleeker it is the more likely you are to actually use it. Print it on colored paper (to get your attention) then fold, and place it behind your debit card, or in your checkbook. It has to be located right next to your usual payment method.