“However, in order to remain on top of your finances you need to take a step back each month for a holistic view of how you have transacted,\u201d said Eunice Sibiya, Head of FNB Consumer Education.<\/p>\n
It is important, not only to assess your cheque account statements, but to also pay attention to your credit card and savings account statements in order to make comparisons between your spending across accounts and your savings.<\/p>
Remember that different aspects of the statement will be important depending on which statement you are analysing. For your everyday transaction account, your cheque account, the opening and closing balance is the most important aspect.<\/p>\n
This is the account from which debit orders are paid and you need to pay attention to make sure there is a positive balance, so that debit orders don\u2019t bounce.<\/p>\n
However, when you are looking at your credit card or savings account statements, you need to pay attention to the interest received or paid.<\/p>\n
The general basics which all statements will indicate are; the main account holder details, the type of account held, a summary of your actions on the account, namely opening and closing balance, monthly deposits and withdrawals, interest and bank fees.<\/p>\n
\u201cAs with all information, the true value lies in the interpretation,\u201d added Sibiya.<\/p>\n
She suggests that statements can prove valuable in the following ways:<\/p>\n
Spending habits<\/h4>\n
A productive exercise is also to determine how many times a year you had large medical expenses, or unforeseen circumstances, in order to make a well informed decision about how much you need in your emergency savings.<\/p>\n \u201cAnalysing your spending habits will very quickly highlight in which areas you are living above your means and where you can cut down to put more funds towards saving or paying off debt. It is also the ideal foundation for drawing up a realistic budget which you can easily integrate into your life,\u201d advised Sibiya.<\/p>\n <\/p>\n Make sure you are up to date with your bank\u2019s pricing as there are generally areas where one can cut back on costs.<\/p>\n These include having your statements e-mailed to you instead of having printed copies delivered and using digital channels instead of drawing or depositing money inside a branch.<\/p>\n \u201cThere are some months where the money spent on a branch withdrawal or deposit could have been the difference between being able to buy that something extra for the dinner table or not. Analyse your bank costs and do research about alternative ways of transacting – cellphone and app banking are often easy ways to cut back on banking fees.\u201d<\/p>\n <\/p>\n![\"Spending\"](\"https:\/\/albertonrecord.co.za\/wp-content\/uploads\/sites\/35\/2015\/03\/Spending.jpg\")
<\/a>There is no better way to determine your spending patterns than to analyse your bank statements. Create categories such as food and beverages, entertainment and so on. Then, based on a two or three month overview, calculate your average spending for each category.<\/p>\nMaking sure you don\u2019t incur unnecessary costs<\/h4>\n
<\/a>The analysis of a bank statement is an easy way to determine whether you are accruing unnecessary costs or whether you could potentially save on banking fees if you changed your banking behaviour.<\/p>\nTracking debit orders<\/h4>\n