When you go to balance your check book, just add the ‘front’ number and the ‘back’ number to compare to the bank number. Once you’ve done it that way for a month, it’s automatic.

That ‘cushion’ is not only my first line of defense efund, but I haven’t bounced a check in over 25 years. Even in the scary broke times.

The only time I’ve been into one of those loan/pawn, etc places is to pay my utility bill before I got online banking. I really hated it that the utility company closed the nice, clean service center and gave the contract to whoever bid it. A local chain of pawn shops won, to my everlasting disgust.

Used responsibly, payday loans are a financial tool people can use to bridge cash shortfalls.

I only overdrafted once. I kept tight track of our money and knew that there was a slight possibility we would overdraft on 1 check. I put my husband’s check in bank of Sat. & on Monday got an OD notice. Didn’t worry as it was expected. But on Tues, I got 2 more. Right away I went to the bank (in a small town) & we dbl checked. They had no record of a deposit on Sat. They kept looking & found out that the teller had read the name of the employer on the check & deposited the money to that account. The bank reversed everything & cancelled all fees. Boy, was I lucky & did I ever work hard to not do that again.

I keep from it now because I have a senior account with interest (Ha!) & it requires a $500 balance at all times.

Also, I read a large, 2 vol finances book & took 1 suggestion from it. She said to add up all your ann & semiann bills, divide by 12, & put that much in sav each month. I worked quite a ways from my S&L, so I just subtracted that amount each month & put it in the back of my checking acct. (My husband said I kept double set of books.) This way, the only balance showing in my checking was the amt I had to actually spend.

When a bill came due, I would subtract from back, add to ckg, & write a check. Has worked great for the past 30-35 yrs. In fact, I know minus an amt each mo to pay my utilities & to set aside to pay my cc bill (which I pay off @ mo.)

One way this can work is to keep the absolute minimum in checking ($1?) and only write checks for expenses that might need a paper trail, e.g., rent and utilities. Hold cash and only put enough cash into checking for the exact amount of each check. This way, Max should never ever get another bounced check fee again. Get a $123.45 utility bill? Put $123.45 cash into checking and write a check for the same amount. For all other expenses, use cash. When the cash is gone, it’s gone so budget carefully, like really carefully. If expenses exceed income in any month, Max will know up front because the cash will be gone and he’ll have to decide to go without or to borrow (if possible) but at least he won’t have to pay those fees. Only go back to writing checks regularly after an emergency fund is built up. The method is dangerous in that cash is readily available and can be easily wasted so Max has to be super-vigilant on unnecessary expenses.

Use a food bank if not doing so already. Max should understand that he’s but 1 emergency away from potentially serious financial difficulty so he’s got to do everything he can to improve his cash flow and save some money.

Being from NYC, I also want to advise all to avoid parking tickets. If you have a medical appointment in Midtown Manhattan, just absorb the damn cost of a parking lot! Those damn parking tickets add up.

Emergency funds are gospel to me. I’ve been hit with too many surprise expenses not to realize the value of having one. Take it from a reformed overdrafter…

It just really annoys me that the public says, “If they do the crime, they do the time,” which I agree with, but their “time” should end when they have completed their sentence. If they have turned their lives around and are afforded the opportunities to obtain decent paying jobs, then our tax dollars will cease to support them. There are many work rehab programs in the prisons aimed at helping these folks learn new job skills so they can obtain decent jobs when they get out of prison. Commendable, but there is no follow through on encouraging employers to hire them. They can learn a new job skill and be the best in their field, but, if the employer has a rule against hiring anyone with a criminal history, we’re right back to square one.

My sister recently deposited money to her savings instead of her checking by mistake. Overnight, her account bounced 5 checks, and she was stuck with fees for each one at $35 each.

My credit union would have automatically transferred money from my savings account to cover those checks, and charged me a $1 fee for each. That difference would have saved her $150.

I don’t know why banks get away with some of the fees they charge when credit unions are so plentiful and so much more friendly to work with. The one drawback is that there are a few fewer free ATMs, but I can use most other credit union ATMs for free. On the rare occasion when I have to use an outside ATM and pay a small fee, I still feel ahead because I’m not getting stuck for all the other fees that banks charge.

The on-line banking suggestion is laughable in this type of situation. Most people living on the edge do not reliably sustain basic utilities, computers don’t work so well with out phone and electric service. I would assume he can’t afford DSL or broadband. Performing your private banking at a public library isn’t all that smart.

It would be topical for the American readers.

If he has any skills at all in construction, plumbing, or electricity it might be a good profession for him to moonlight at on the weekends until he gets enough experience to sign up as an apprentice or land a higher paying job doing a trade.

Next, blogging. Why doesn’t “Max” come up with some killer blog and start off on that path. Blogging can be successful monetarily if “Max were to strike a niche and attract readers. And he has a knowledgeable friend in Trent to offer him some tips and advice.

Another option, blood donations, plasma donations and medical research. Of course be cautious when doing any of them but they are definitely ways to make a little side cash when the old piggy bank has seen its last penny.

I think, if he can get in the military, that’s a brilliant idea. Even the national guard, or reserves would be a good opportunity and whoever suggested it is spot on. If “Max” really wants out of the life he’s been leading then that’s certainly a possibility.

I wonder if “Max” reads this site. Just doing that would give him loads of helpful tools and tricks to maximize profits, and minimize expenditures. Tell Max to get to the library and start reading on the subject. He should also look at any and all government assistance, tax credits for kids, WIC (if he has small children), AFDC, and the like.

I’d also highly recommend “Truck Driving School” for someone in his situation once he gets ahead enough to pay the fee to the school.

http://www.truckinfo.net/trucking/sage.htm

* I’m not affiliated with that site at all. It’s just for reference.

The cost of going to the school can be high, but the pay would be quite good compared with minimum wage and he’d be on the road and sort of his own boss. I don’t think being a felon would prevent him from getting a job with a trucking company.

There are so many available options, like saving up for a lawn mower and mowing lawns and then expanding that business as you get more customers into a landscaping company and the like.

Carpe diem “Max”

What bank has a $10 overdraft fee? Every bank I’ve seen has overdraft fees from at least $30 to as high as $40 a pop.

Luckily, I’m turning my financial ship around and it feels great. I’m on the Dave Ramsey plan and I’m 3 months away from being debt free except for my car payment (which I plan on eliminating soon thereafter and then driving the car into the ground.)

I would never want to go back to the days of pay day loans. Those loans seemed normal at the time but now they scare the hell out of me.

I’ve been in the military for 8 years now (4 full time and 4 part time) and I’ve seen alot of soldiers make horrible money mistakes over and over again. When you first join the military you don’t get paid much, and with the possibility of being deployed for an extended period, it may not be the best idea for Max.

I think the military is best as a motivator for folks who are young and don’t have much direction in their life. I know it worked wonders for me!

Some people don’t bank at all. They use money orders and it works for them. maybe he can give that a try also.

About 19 months ago I found myself in just the same situation as those very people. Payday Loans and Bank Overdraft fees might as well come from the same entity. (Well, technically they do – the people that are foolish with their money) It’s hard for me to admit at times, but I was downright terrible with my money. Payday loans were pretty much the band-aid (which for a lack of a better term was losing its adhesion rapidly) on whatever financial pitfall I had encountered at the time.

The first loan I took out I finished in the time alloted. I was relieved. It was almost too easy. Because I paid on time my next loan amount was increased. I didn’t pay attention to the finance charges so I continued to borrow every now and then until finally my maximum of $500 was reached and I was taking up to 4 weeks with that lender to payback. The fees were outrageous but I still paid them. At my lowest, I had four loans out at once – well over my state’s maximum. Loans were carried out for months and it was hard to get anything done.

Ultimately I was falling behind on everything and my wife and I agreed it was time to get real with our finances. We couldn’t pay anything and our collective behinds were being taken to court over our debts. We filed for Chapter 7. It’s not something I’m proud of, but it was the wake up call (no, going to court the first time didn’t wake us up!) that we needed to get serious about our future and the future of our children. Bankruptcy isn’t for everyone, and whether or not it is right or wrong isn’t the subject at hand.

The one thing I have gotten out of filing for BK is that debt makes the world go round. Leaving the federal building I had my Meeting of Creditors at, I saw various BK Attorneys with their clients going over their cases. Many firms up and down the strip promising fast and easy recovery. It was sick.

Going through this process has scared me straight. I look at my needs now versus my wants and gladly forgo the extra soda pop at work and save myself $5 a week or $25 a month and drink water. I bring PB & J to work for lunch every day. (Healthy? Not really, but it’s a cheap diet and I eat small healthy snacks throughout the day to keep my energy up) I live a mile from the office so I can walk to work. Things like that add up over time. At the rate I’m going I should have $1,000 a month every month to go into savings and build a separate emergency fund.

I might suggest a military career for Max. It’s not easy work, but childcare, medical care, base housing, and a decent salary would then be in reach. Heck, they’ll even help out with college expenses if he’s a go-getter.

The military can be a good option for people who’ve made mistakes and don’t have a good sense of self-motivation. From what I hear, the drill sergeants will certainly help motivate you :)