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Stop Taking a Beating.

Start Thinking About Banking.

Make the savings and checking connection.

It might seem like a stretch at first, but the best way to avoid a cash crunch is to open an emergency savings account that you can use to pay for unforeseen expenses. Build it up a little at a time. Open a checking account, too. It’s cheaper than cashing checks at a check-cashing store.

Ask your bank about linking your checking account to your emergency savings account. With this arrangement, an overdrawn checking account can be covered by having the shortage automatically transferred from your savings account to your checking account. Expect to pay a small transaction fee for using this service, but it will be less than what you'd be charged in interest and fees for a bounced check or a short-term loan.

But beware of bank overdraft loans and bounced check fees.

Banking some money is a great way to duck punches from fast-money places. But bank overdraft loans and bounced check fees can hit you just as hard. So you should always avoid overdrawing your account. It's a complete waste of your money. To learn more about avoiding heavy bank fees, read a Federal Reserve Bank brochure online.