Unfortunately, checking your credit card statement every month is a practice not everybody partakes in. While I can understand, I certainly don’t agree. I know how much junk mail a person gets on a weekly basis, especially credit card marketing. It can become a cumbersome task to sift through all the mail and differentiate the junk from the worth while.

However, it is worth your time to routinely check your credit card statement monthly. This is a practice that needs to be taken seriously to keep track of your financial big picture. There are several reasons to check this statement every month, but these are the 5 most important.

1. Identify any fraudulent behavior

First and foremost, checking your statement for fraudulent behavior is one of the first lines of defense in identity and credit card theft. You can be sure that the majority of stores don’t check the signature on the back of your credit card, so you have to take matters in your own hands.

There has been a few times where I found unapproved charges on my credit card statement and had to go through a formal dispute. Always keep an eye on your statement to see if everything is valid. Even if you have to write every purchase that you make down in your ledger, it is worth it.

2. Get an idea of how much you are spending per month

Purchasing goods and services using your credit card is so easy and seamless, often times you have a hard time keeping track of how much you are actually spending. Although this sounds foolish, it does happen. Think about it…have you ever checked your statement and thought “wow, what did I spend all this money on”?

Checking your credit card statement monthly gives you an idea of how much you spend each period. This information comes in very useful when you are making your budget and trying to save money. People who don’t keep track of how much they spend end up in credit consolidation very fast.

3. Check for fees and other surcharges

The infamous “hidden fees” happen to everyone. Whether it is your credit card company itself, a website or group you are a member of or practically any other place of business, there is always a good chance that your card will be surcharged.

These companies take advantage of the fact that people don’t regularly check their statement, and you don’t want to be taken advantage of. Like I said earlier, checking your statement to make sure everything is approved is an absolute must.

4. Know what you’re spending money on

Your statement not only tells you how much you are spending, but what you are spending your money on. This is very important when trying to streamline your expenses. Going through the economic crunch, it is important that we make sure we’re not being financially wasteful.

Keep track of your credit card statements in a file cabinet or a folder and review them once every 6 months to make sure you aren’t spending too much at restaurants or the mall. You’ll be surprised how much help it can be. It might just keep you out of debt relief counseling.

5. Keep track of new promotions and reward points

Every credit card I have ever had sent all the information about new promotions and reward points in the mail with the credit card statement. Although this marketing can usually be junk, some of it could be something you are interested in. It is definitely worth a quick look.