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Spending your money: deliberate or downright impulsive?

It boils down to a want versus needs. Conscious or not, people create lists of their want to haves and nice to haves and assume their business needs will come together somewhere in the middle.

They create A Venn diagram.

There is absolutely nothing wrong with having a prioritized list. This can help your accountant plan the short term and long-term business plans. The ‘needs’ fall into the short term and the ‘wants’ are factored into the long-term planning.

There are generally two types of people who will come and see a business coach or accountant: Those who think the Venn diagram will work – usually clients whose business is a part time gig they want to grow, and those that are doing it and wondering why it isn’t working for them – usually clients who are on contract or commission based. On the surface it can appear thoughtful, though neither will end up working! Why? Because they both don’t have long term planning involved. In the end it is rationalizing inconsistent and mostly impulsive spending habits.

From a psychological perspective – people have two thought processes: deliberate and impulsive. There is a balance one should want to achieve in business, and this is most critical in growing a business.

Deliberate or impulsive?

It’s a balancing act. Flexible income clients need to speed up their slow thinking to play their business model. Fulltime income clients need to slow down their fast thinking.

Having an accountant’s expertise can help you moderate your speed to ultimately achieve your goals!

If you have any questions, please do not hesitate to contact us on (02) 4934 4260 or email us on reception@plhaccountants.com.au.