Maintain a Bank Account Buffer to Avoid Over-Limit Fees.
Nothing can ruin your budget more than a small amount or two that slightly exceed your budget, resulting in huge fees. To prevent this from happening, make sure you always have a cash buffer that you never plan or spend in order to avoid zeroing your balance.
As explained in the personal finance blog Money Under 30, the buffer ensures that if you count your money by a dollar or two, you don’t get a bunch of commissions from your bank that will drive you further into the hole. Best of all, anyone can do it. While some of the financial challenges of an adult can take time – like investing for the future or setting up an emergency fund – having even a small buffer is something anyone can do:
Whether 15, 25 or 65, if you have money problems and want to get better, the very first step you should take is to create a bank account buffer … When you have a bank account buffer. You don’t need to worry that a late Starbucks break that you debited from your debit card will overspend your account and trigger a $ 35 overdraft fee.
Ideally, the larger the buffer, the better, but it doesn’t have to be huge. Even an extra $ 10 or $ 20 in your account can guarantee that the coffee purchase will not cost $ 40. This is a small price to pay to potentially save tons of money in the long run.
Why do you need a “bank account buffer” | Money under 30 through Rockstar Finance