Take the time to look at your bank statement, either on paper or online and note all automated payments, either via withdrawal or via online banking. Some of these will likely be non-negotiable. Perhaps you automate your mortgage or rent payment, your phone bill, or your utility bills. Note these withdrawals so you will account for them when budgeting; however, using automated bill pay services for these types of bills is a practical choice for many people. If you are prone to forgetting to pay bills in a timely manner, automated payments may be a lifesaver, and they can also be especially useful if you regularly travel and may be away from your files and bill paying system. Recognizing your own weaknesses is a necessary part of planning your budget, and automating bill paying can help you to overcome disorganization that leads to late payments and poor credit.

Many of us, however, will find any number of automatic withdrawals or charges that have nothing to do with necessary bills. Gym memberships, video club memberships, monthly access to subscription based services, newspaper subscriptions, and even magazine subscriptions may all be set up as automated withdrawals. Perhaps you are still paying for services you have forgotten or no longer use. You may find that simply by cancelling unused services you can save a substantial amount of money each month. Jot down in your monthly budget any such automated withdrawals, and if you realize that they are no longer wanted or needed, take the time to cancel the service. If you opt for a trial membership in a service, note the cancellation date if you would prefer not to be charged.

Be certain that you are budgeting for these monthly expenses. That video club withdrawal should be included in your entertainment budget, and that gym membership under health or entertainment, as you prefer. If your budget is not adding up, these sorts of automated withdrawals may be to blame. If you do rely on automated payments for bill paying, consider including a calendar in your monthly files, or noting the dates of payments on your regular calendar, planner or PDA. This will help you keep your checkbook register, budget and bank account balanced.

As with any other financial tool, automated payments can be useful and practical. They can also be costly, if not monitored and managed. As with all other aspects of your budget, keeping a close eye on any automated withdrawals will you keep your finances in hand and under control.