Tagged With: float

In defense of rounding

If you’re used to just “not worrying” about money (which can ironically make one pretty anxious) or just wanting to “let things happen”, my suggestion that you track all of your spending (all of it, every purchase, every month, forever) might seem a little daunting. All those numbers. Math! It’s too overwhelming. But let’s not … Continue reading »

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What to do when your account balance is different than expected

Balancing your household budget might be difficult to do, but it’s not complex.¬†You just make sure that the money you have going out is the same amount that is coming in. (In this way, Charles Dickens’ Micawber was only half-right, though we agree in spirit.) In this way, the money you have in your bank … Continue reading »

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How to calculate your true account balance at the end of the month

WARNING: This post contains math. How much float do you need? Well, optimally you’d have enough float such that you could cover your entire month’s expenses on day 1, just to be safe. But in general you want to have enough float in your account such that you never need to worry about the “timing” … Continue reading »

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How float can help you track your expenses more effectively

Let’s talk about float. As I’ve defined it before, float is the money in your checking account that is above and beyond your paychecks. It is a cushion for your day-to-day balance changes. Having adequate float in your account is an easy way to allow you to automate your bills and not have to worry … Continue reading »

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Why overdraft charges are okay (but unecessary)

  Overdraft charges are the great irony of banking. You get charged a fee when you try to make a purchase and you don’t have sufficient money in your account. It would almost be a joke if it weren’t so humorless. Nonetheless, I can’t say that I’m against them.

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Why it may be worth spending more for simplicity

  (Meta-note: 100th post!) I was having dinner with a friend recently, and at one point we started reeling off the “obvious” pithy financial wisdom we knew. Things like “spend less than you make” “invest in index funds” “avoid fees,” etc. At one point, she also continued, “pay your car insurance up front.” Ahh. Umm. … Continue reading »

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Draw your money graph

  If you are like most people, you think visually. A table of values might be nice to look at, but it doesn’t have the same impact of those values plotted in a visual way. So it should surprise no one that I suggest that people think about their finances in a visual way too. … Continue reading »

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How much float do you need?

  In my last post, I talked about the importance of having “float” in your checking account. Float is that extra cushion of money in your account that’s above and beyond the money that comes in from your income. The goal of float is to allow you some cushion and wiggle room for paying your … Continue reading »

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