Leith Waterworld in negative financial situation

Review a few ways to avoid your own negative financial situations.

09:45 03 June 2013

It is believed that Leith Waterworld was experiencing significant losses each year of about £350,000. Most of us don’t have that kind of money to lose, but maybe we can relate to the situation in some way. At times it may seem as though we are juggling too much with our financial situation.

 

Here are a few ways to avoid a nasty negative situation in your personal finances: 

 

• Debit card holder-if there is more than one person accessing a banking account, the chance of experiencing a negative financial situation is pretty high. Ideally, one person should be the primary debit card user, and the other could carry cheques. If you each have a card, agree to contact each other prior to purchasing spontaneously. 

 

• Overdraft protection-some banks offer a form of protection if you accidentally spend more than you have on your account. The protection acts like a temporary loan, complete with an interest rate, and help avoid an even worse financial situation from a penalty fee. 

 

• Reconciling accounts-checking your bills and statements each month are essential to make sure there are no unauthorised purchases and that previous payments are showing up properly as well. Reviewing these on a monthly basis can take up a bit of time, but could pay off in the future if you ever find an unexpected charge, or you notice a payment has not posted. You’ll be able to prevent a bad financial situation before it even begins. 

 

• Recurring payments-here is one of the ways that people can often encounter an unfortunate financial situation. Keep a list of your recurring payments and the various accounts they come out of, then you’ll be able to easily reference it when budgeting or checking your available finances. These can take you by surprise otherwise and lead to a stressful financial situation. 

 

There are other ways to ensure that you don’t experience a negative financial situation, but these suggestions can set you in the right direction.