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When you make $300k+ that's a lot of outlfow and potential for waste. I think you'd be surprised how quickly I can spend it. Accounting, and more importantly ca
by ryanmarsh 10y ago
When you make $300k+ that's a lot of outlfow and potential for waste. I think you'd be surprised how quickly I can spend it. Accounting, and more importantly cash flow forecasting becomes a must.
It is true that you cannot reduce your costs to zero, and there is a point of diminishing returns for accounting, but the wealthiest people I know will take a vendor to task over pennies. I know that this mindset does not lead to wealth, but it does allow you to hold onto it.
- dmix 10y agoAt $300k the costs (ie: time) involved in tracking your spending in the way accountants do it, or how an app like YNAB [1] is set up, is much too expensive where the ROI is questionable. It's important to have a money-guy to handle taxes, corporate paperwork, etc and have a basic budget. But as far as tracking all expenditures manually, I believe this is the wrong approach. It's good to watch your money and sit down once a monthly to review where your money went and plan your next 30 days. Biweekly would be even better. This is a good balance between the two extremes while giving me more time to focus on building up my side businesses and other revenue drivers. [1] https://www.youneedabudget.com/ https://www.youneedabudget.com/