Do you know how much money is in your bank account at this very moment? Direct deposit has made it so easy for me to never have to drive to or look at my bank again. In fact, accompanied with the ease of my debit card, I am able to operate on auto pilot. The money is deposited into my account and I swipe my card until it is gone.

The problem is when that little piece of paper arrives in the mail saying that my account has, yet again, been overdrawn. This wouldn’t be such a big deal except that little piece of paper also has a big fee attached to it that, with a little responsibility, could have been entirely avoided. How many fees will it take before I get the message that my lack of interest in my finances is, in fact, COSTING ME MONEY?

Here are 5 ways to avoid common budget blunders that, with a little dedication, can save you money instead of blowing it:

1) Set A Budget: Our money begins to work for us when we assign jobs for our money. Often times we feel like we are controlled by our money, that our income determines what we can or can’t do/have. This is an illusion. If we tell our money where to go each month (and actually put it there), we have the upper hand and are able to dictate our spending according to our priorities. When we plan out our budget and stick to it we are always surprised by the amount of money we save.

2) Emergency Fund: When my husband and I started to take control of our finances, we were encouraged to set aside an emergency fund. This was to be accomplished before anything else! If we are on a fast track to financial freedom and a silly bill comes up, like a new transmission, it could ruin everything. So we set aside $1000.00 that we are not allowed to touch unless there is an emergency. This way we won’t fall behind when unexpected expenses arise, which they always do.

3) Save: When determining our budget, always pay ourselves FIRST. It doesn’t have to be a large amount, but commit to saving something EVERY paycheck. You’ll be shocked at how fast this can add up.

4) Balance The Checkbook: I am guilty of not balancing my checkbook. So guilty that while I type these words I am shaking my head. It is SO important for us to know how much money we have in our account at all times. Not only will this help us avoid unnecessary fees, but it will keep us up-to-date on how we are doing with our budget throughout the month.

5) Cash Envelopes: You know those handy inventions called direct deposit and debit cards I referred to earlier? Yeah, they mess me up! If my husband and I take the money we have assigned to various expenses out of the bank and put the cash in a designated envelop, we are clear on where it is going and exactly how much we have to spend. So when the envelop that says “Restaurants” is out of cash, we know we can’t eat out anymore that month.

These tips have helped my family tremendously while we are learning to manage our finances. Don’t take my word for it. Go to the source yourself! All these suggestions came from best-selling author, motivational speaker and financial strategist, Dave Ramsey. Learn to manage your finances at Dave Ramsey’s Financial Peace University. He has helped countless Americans take control of their money.

Have you learned to manage your finances? Have you participated in Financial Peace University? Please share your story of inspiration with us!

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Tags: balance your checkbook, Bank account, budget, Dave Ramsey, Debit card, direct deposit, emergency fund, expenses, finances, Financial Peace: Restoring Financial Hope to You and Your Family, Income, Money, money management, Overdraft, Personal finance, saving money, savings account, spending