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Negative Bank Balances: How to Avoid Them

  • September 19, 2019
  • By Sarah Solomon

Nothing’s worse than opening your bank account app and seeing a negative number.  Despite the reasoning behind it, know you are not alone. Thousands of people’s account balances reach the negatives each and every day. It’s what you do to fix it that differentiates you from the others.  Having a negative balance diminishes your reliability and chances to receive funding.  It’s significant to try and maintain a positive balance. To avoid negative days and irritating overdraft fees, follow REIL’s tips below: 

Be Aware and Acknowledge your Account

  1. The most important thing to do is get your account to positive again.  Yet, how are you supposed to know your in the negatives if you never even check your bank app?  It starts with awareness. Monitor your money frequently and start making checking your app a habit.  You should always make sure there are funds to support your consistent purchases and unexpected ones.  Banks typically suggest having a checking account, as well as a savings account. This way, if you are reaching the negatives in one account, you can transfer money from your other one to remain positive.  You will always have a plan B, you won’t need to rush and sell random things or expedite your paycheck. 

Set Alerts for Low Balances

  1. While the bank doesn’t mind receiving your overdraft fee, their intent is not malicious. Banks provide their customers with so many ways to avoid overdraft fees.  Most bankers suggest turning on alerts for their credit/debit card. These alerts will notify you when your balance is below a certain number that you chose. Once the threshold is reached, the bank will send you a text encouraging you to fix your balance prior to reaching the negatives.  There is nothing better than a little help from your bank, and a little reminder every now and again.  

Manage your Money Carefully 

  1. Finally, the stress that comes with negative balances can all be avoided if you learn to manage your money better.  As humans, we love to buy things. Whether its a mood or a true cure, buying new things makes us happy. However, it is essential to remain truthful in the money you can actually spend.  If you know you have a big bill coming up, don’t randomly decide to spend your money because you feel like it. Save your money, or put it aside for the bills you know you need to pay. That way, you can use and budget the leftover money you have to buy other things that aren’t necessarily necessary. 

REIL Solutions 

Negative days certainly make people feel somber. Negative balances in their bank accounts are a whole other story.  Avoid stress and manage your money well. Opportunities for you to invest your money in the future will be easier, as well as receiving funds if you should need. REIL is here to help you with all your questions and future endeavors.  

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