Okay, so we all know that balancing your checkbook is not one of the more exciting tasks in life. But, even though balancing a checkbook might seem like a dreadful chore, it's not really that difficult. If you keep up with your spending and earning and update your checkbook each time you use your account, balancing the checkbook is simple and can prevent major financial blunders.

The trick that so many people ignore is that each time you write a check or use your debit card, you should record the amount of money you are depositing or withdrawing in your checkbook register and then you should add or subtract the amount from your previous balance. If you can get into the habit of doing this every time you use your account, you will always have a balanced checkbook and you’ll never have to dread the daunting task of sitting down with all of your receipts and figuring how much money you have left. Forming the habit of recording each transaction the moment it takes place will also make it less likely that you’ll forget to record something or lose a receipt before you get the chance to write it in your register.

Just in case you do forget to make note of a transaction, you should keep your receipts in a file or box at home. It’s usually a good idea to keep receipts until you get your monthly statement from your credit union and make sure your checkbook ledger matches the statement. If it does, you can put the month’s receipts in the trash. (But make sure to shred them if your entire debit card number shows up on any of them.) But if your ledger doesn’t match the credit union statement, it’s time to sort through the month’s receipts to see if there are any that you forgot to record. If you do save your receipts, make sure that you put them in their place first thing when you get home so that you don’t lose any of them.

At the end of each month when your statement arrives, you should gather your receipts, statement and checkbook, sit down and go through your checkbook ledger and your statement to make sure everything matches. When you find a match check it off until everything on the statement and in the ledger is checked off. If something doesn’t have a checkmark it’s time to sift through the receipts. Once there are no discrepancies and the balance on the statement matches the balance in your checkbook, you’re done for the month.

Take a look at our convenient spreadsheet (right click and Save Target As) for help with balancing your checkbook. You can plug your own numbers into the blanks and figure out your current balance. Remember, keeping your checkbook balanced and up to date is a lot more fun than waiting until the end of the month and risking a checkbook disaster.