Saturday, August 9, 2014

Buffer in Checking Account

Being super busy this long weekend, I did not get a change to deposit the rental checks for August until today.

This months two of these checks did not clear.  Luckily they are from the same bank as the one I bank at, so the teller told me when it did not clear, and I did not deposit them.  This avoids an NSF (No Sufficient Fund) charges on the renters side, and me the trouble of having to get more checks from them.

Two things I took away from this:

  1. Remember to deposit rent checks as soon as possible.  Because apparently if the money is in their account the renters spends it (not know that they may rent coming out soon).
  2. It always scares me how people don't plan/track their spendings.  Either you track your expenses and know how much you should have in your account.  Or I usually put a buffer in my accounts in the off chance I forget a bill/automatic payment that is suppose to come out.  NSFs are not cheap, nor is the hassle with having to deal with whatever payment that gets rejected.  It is also possible that some renters live pay check to pay check and don't have savings or emergency funds. I once had a tenant call to ask if they can get a few extra days with paying rent, because they had bought flights that month instead.  That's a whole other post - the need to have emergency funds.