It is so much easier to lose track of your money when you spend it mostly in cash form. Some might argue that if they only go to the ATM when they need cash, it’ll help them manage their costs. But they forget the creeping ATM fees.
A few facts to note: If withdrawing from your bank’s ATM, the transaction is always free but if withdrawing from another bank’s ATM, your bank has to pay settlement fees. The bank won’t charge you for the first three ATM transactions each month at an ATM not owned by your bank. But after that, each subsequent withdrawal will cost you ₦65.
Still, it is possible to make the ATM work for you. Here’s how:
- Limit Your Visits to Once Per Week: If you’re in the habit of withdrawing several times a week, you’re likely also incurring fees. It’s unlikely you’re always near your bank’s ATM when you need cash. However, if you limit your withdrawals to one per week, you’re more aware of your need for an ATM, and can find one that makes sense. To do this, you’ll also need a weekly budget.
2. Create a Weekly Budget: If you haven’t already created one, go to the REACH app and use the Smart Budget tool (https://findreach.app.link/v992yIrgAN) to create a budget that fits your lifestyle. You’ll get a weekly, monthly, and annual breakdown of your budget based on what you earn each month. Now that you know what you should be spending each week, withdraw that amount from the ATM, give yourself a 10% — 15% buffer. But don’t withdraw any more for the week.
3. Track Your Change: At the end of the week, take note of what cash you have left — if any. This change can go in your fun pile or back into the next week’s cash.
Like they say, you cannot grow what you don’t measure. This means that even though cash is your preferred means of transaction, you can still account for where that money goes. Go on the REACH app and use the Expense Tracker tool