Sharing Daily Discoveries About Personal Finance And Business Topics

How You Treat Funds That Are On Hold

As some of you know I recently received a cheque in the mail that was related to that Sony Pictures Entertainment Cyber Attack Class Settlement Mail. I was actually surprised as I guess technically this was all legitimate. However, I will only say that if the funds actually cleared. So today I went to the bank to ask if they could verify if it was indeed real. At first the teller was asking me if it was a US or Canadian cheque. I actually just thought it was written in Canadian funds but apparently it was US. I was then told it would take a few days to verify the payment and all as the funds would simply be on hold.

The interesting thing was that the teller was saying to me how because it hasn’t officially cleared yet that I should make sure that I have the same amount of money as this cheque in the account at all times. I suppose this is in case the cheque ends up not being legitimate where the bank needs to reverse the funds. This wouldn’t be an issue of course as I always like to have a good nest of savings. But it did make me wonder how there are probably many people who would spend funds that aren’t technically cleared.

I tend to treat these funds just as I would at say a job where even if you worked your two weeks and are expecting money I wouldn’t actually spend it unless it’s actually in my hands. In many ways I am surprised everyone doesn’t have that same kind of habit. There can often be too many uncertainties where the worst case scenario of you not receiving your funds will probably create a pretty big mess.

I find it also helps to discourage you from living with an always in debt lifestyle such as spending money on the credit card that you don’t actually have. Anything to train out that bad habit is always a plus.

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