If you tend to go overdrawn a lot, then you will understand why it is best avoided. You get charged a lot of money in interest and fees and so it is a good idea to avoid it if you can. You may think that it is not very easy to do, if you regularly go overdrawn, but there are things that you can try which could help you. If you do not usually go overdrawn then this is great, but it could still be useful to make sure that you ae doing everything that you can do to avoid it in the future.
Keep a constant check on your balance
It is wise to always be aware of how much money you have available in your account. You will find that this will reduce the risk that you go overdrawn accidently. With such easy access to money form our accounts using debit cards and cash machines, it can be so easy to just withdraw more money than we have available without really noticing. Therefore if you always check, before making a transaction then this will help. Check between transactions as well in case you have any direct debits or standing orders which go out as well. It can be wise to change the dates of these so that they come out of your account on the day after you get paid so that you know that you will have the money available to pay for them. Then you will know what you have left for the other purchases that you need to make. You should be able to decide, based on what money you have left, what you can afford to buy and what you should wait to buy.
Try to put away some savings
If you can, it is really handy to have some savings to fall back on. This means that if you have an expensive month, you will be able to use the money from the account to save you having to use your overdraft instead. It can be difficult to save money, but if you are careful with what you are buying, you should be able to. Even if you are just saving a small amount at a time it will add up and could make a difference when you do get short of money. A good way to make sure that you remember to save is to put money into your savings account just after you get paid, so before you have the opportunity to spend it. Then you will be sure to have some money saved at just before you get paid again, you can add in the amount left in your account as well.
Cut down unnecessary spending
It is good to make sure that you think hard about everything that you are buying and be sure that you are not spending money unnecessarily. Think about whether what you are buying is necessary and if you can go without it. Do this for everything and this will mean that you will not spend more than you need to. Also look at thinks that you pay out for regularly such as mobile phone, insurance, television broadband and other contracts and subscriptions and see whether you can reduce the cost by switching to a cheaper provider. By doing this you may not even notice any difference in service, particularly if you are changing utility supplier or something like this and you could gain enough money each month to prevent you from going overdrawn. It can be quite fun comparing prices and seeing how much less you can spend. Once you have done it for a while it becomes an automatic habit and this can make it real easy and mean that you end up spending less all of the time.
Look for earning opportunities
It is a good idea to make sure that you are always aware of ways that you can be earning money. Whether it is picking up some extra hours at work, applying for a promotion or selling things you no longer need, it will all add up and help you out. You might be able to do a second job, perhaps working from home or doing evening or weekend work in a shop or bar. There are many opportunities and so if you have the time, you should be able to earn some more money. It can be fun doing some extra jobs and getting more money but you do need to be aware that unless you are selling your own preowned items, you will have to declare any income to the tax man so that you can pay the relevant amount of tax on it. Even if you earn below the tax limit you still need to make them aware of your earnings.