IPL Special Offer- up to 41% Off on Elearnmarkets Courses & Webinars. Use code AMIKKR & REGISTER NOW

Introduction to Banking

Managing Money

An age-old saying goes “A penny saved is a penny earned”.

 

Managing one’s finances is as important as earning money. While Satish has been saving up some amount every month from his salary, he never followed a kind of discipline. However, he has seen some of his colleagues maintaining excel sheets of their bank account transactions and tracking the same meticulously. 

 

One day, while having lunch, he asked his colleague why he tracked his bank account manually. This started off a conversation where Satish got to know a lot of valuable things. 

 

How to manage finances?

Managing finances is extremely important. While managing one’s income such as salary may not be in someone’s hand, managing what people already have with them is easier. Managing finances gives someone the leverage to increase income and cash flow to a considerable extent. A few wise decisions such as investment in the right avenues, purchasing insurance policies, creating an emergency fund can greatly affect financial security during a person’s lifetime and even beyond. 

 

Ensuring better control of funds in bank accounts: Having better control over funds is imperative to avoid untoward situations. Without proper control and tracking, people often lose track of their money. Then they have to face situations like insufficient funds while withdrawing money from an ATM, unavailability of the fund in case of emergencies, etc. 

 

Once Satish learned about this, he realized that it is his own money and no one else can look after it the way he can. His colleague told him the following methods to have better control over his funds:

 

Keeping a track of the fund in the bank: It is a great practice to keep a manual ledger balance of the bank account. In case, someone is unable to do so, he/she should at least log into the account at regular intervals and reconcile the transactions in the account. This tracking will also help in identifying any error or fraud immediately which will enable the bank to take appropriate action. 

 

Signing up for multiple channels of banking: A great way to have better control over the funds is to sign up for all the services the bank has to offer such as email statements, SMS alerts, net banking, and mobile banking. This way, a customer can stay informed through multiple channels about any debit or credit in the account. 

 

Keeping in touch with the bank: It is essential to keep in touch with the bank for obtaining help when needed. Those who can visit branches may make acquaintances with someone at the branch. Those who cannot remain in touch by using Phone Banking. Banks assign relationship managers to customers. These relationship managers are qualified to finance professionals entrusted with the job of taking care of all the customer’s needs. They visit a customer’s office or home to remove the hassle of visiting the bank for the customer. These relationship managers are trained on all kinds of banking procedures as well as handling investments. They are of great help to customers.

Did you like this unit?

Units 31/42