Dad gives me a check every month to put towards the mortgage of my home since he lives with me. Due to the change of the year, in December he had written a check for December 2012. I, of course, missed this and mailed the check off to be processed since I use online banking. The check was returned and we issued another check with the correct date to be mailed out.
After not seeing the check cashed for an abnormally long period of time I decided to check both my account and my fathers, and noticed his account was short the amount of the check by about $40. I immediately did a transfer into his account from mine for $50 to cover the balance in hopes that it would reach his account before my check was processed. Unfortunately it didn’t so he accrued a $35 overdraft fee. Apparently he had spent too much money at the store and didn’t figure up his balance correctly which is why his account was short.
– Submitted by: Crystal
Keeping track of income and expenses is the one basic important rule to keeping your finances in order and getting out of debt. I use Microsoft Money to do this, so I know everything that comes in and out of my account, even before my bank does, by putting in future transactions that I know are coming out for the next month as well. Be diligent about recording excess purchases like food and gas that might not automatically be displayed in your tracking system and you should be able to afford misfiguring like this.
Amount Flushed Down the Money Drain: $35