Wise Accounts Blog

A trademark of insanity is repeating the same things over and over again expecting a different (better?) result...

You are not going to get ahead financially until you have a good hard look at your spending habits. What percentage of your income disappears in rent? What proportion vanishes in food, transport, entertainment, etc... ?

Unless you know where you are starting from you will never pull yourself out of your situation - simply because you have no way to measure your progress - or worse detect if you are actually falling further behind...

This is where Wise Accounts can make a big difference. Tracking where your money disappears will put you in control because that knowledge will draw the line between what is essential from what is discretionary.

Another benefit of counting your dough is that it will give you confidence that saving up for a worthwhile goal is both achievable and rewarding. It all boils down to self-esteem. Once you feel good about yourself and just trust in your abilities you are empowering yourself to get where you want to be.

Seeing how your resources start to accumulate simply because you have set your mind to it can be a tremendous boost to your ego. It all comes down to a word most rebels love to hate: self-discipline.

If you are still reading on may I suggest to sign-up to Wise Accounts and get yourself underway. You don't need to enter everything since the start of the current financial year. You can do that later if you feel so inclined. It will be useful when you file your tax return.

The bare minimum you need is to enter your current bank balance, your regular income and outgoings (we call these recurring transactions) and immediately you can produce a cash flow forecast.

It will show that either you are spending less that you earn and at what rate - or that your situation is unsustainable and how long it will take you to go broke. Before you jump over a bridge though, just check that you haven't missed anything. As time goes by and you refine your system it will become more and more accurate and you will be able to see your face in the mirror - financially.

You've heard the saying: "little streams make big rivers" or "do not despise the day of small beginnings". One word of caution: do not brag about your new system until you know it works for you. There are plenty of jealous folks out there who don't want you to overtake them on the road to success. It is a path littered with a few casualties. When they see you powering along they might say to themselves: "If this guy can do it, why not me?"

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