Be Accountable To Your Accounting
I am constantly amazed at Retire By 40’s accounting wizardry. Don’t get the wrong idea. He’s not using accounting tricks like the crooks on Wall Street. He is using Simpler Monthly Accounting to keep track of his inflows and outflows. I was so hypnotized that I asked him about it a few times. He explained his accounting method and also shared some best practices.
Minimal Active Accounts
I scanned my Mint account and saw a few accounts that were being underutilized. I chopped off a debit card and an unused checking account. Immediately I felt like I was more in control of my finances. I suggest you do an assessment of your accounts and close the ones you aren’t using regularly. Thinking back, I artificially inflated my ego by “managing” all my accounts. All it did was create busy work. Life is complicated enough, do what you can to simplify.
I’ve been using Mint for awhile, but I got lazy. After setting up my accounts, I forgot about it. I would login to check for errors, but I wasn’t diligently categorizing unknown expenses. Making a point to do this going forward forces me to be more active with my Mint account.
Initially I was mesmerized by Retire By 40’s accounting magic. In actuality, it was his amazing inflow and outflow reports. He recently had a baby and he spends so little! I now realize I wasn’t being diligent because I didn’t want to see my less than stellar savings. Perhaps I also knew my savings practices couldn’t compare with RB40, so why even bother? I kicked both of these unproductive mindsets to the curb and faced my situation head on with no excuses. I am now accountable for my accounting. I am tracking my basic inflows and outflows and being more diligent with my Mint account. I recognize my savings needs work, but burying my head in the sand is the worst possible choice. If you need more convincing, check out My Journey To Millions‘ Accountability Will Lead To Success.
How is your savings going? Do you track your inflows and outflows? Are you diligent with your Mint tracking or do you set it and forget it?
Minting Nickels posted How You Can Help Us with Our Spousal Challenge, and Links and also featured Eating Out Is Cheaper Than Cooking