Re:The Surprising Ease of Plain Text Accounting
by dmix on Tuesday July 19, 2016 @12:01PM
(#12122494)
At $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.
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.