Your Account Balance is Lying to You

Published on July 29, 2015 11:01 am, by

The other day I was wandering through Westfield’s when I stumbled into JB Hi Fi.  I’ve been happily watching TV on my iMac for nearly a year but when I saw the latest and greatest Plasma TV for around $2,000 I started telling myself that I had “earned” the upgrade. I checked my bank balance and I saw I had $2,396.  That little voice became a lot louder – “I’ve got the money”, “I can afford it”, “I’ve been saving hard and I have earned it”

See my bank balance was lying to me.  I didn’t really have $2,396 because my rent was due the next day and my mobile phone, internet and health insurance bills the following week. What I really had was closer to $1300.  Plus my plan was spending this hard earned money on my next trip to Turkey.

“Available funds”
When I open my Bank App – my balance is always displayed as “available funds”.  By default, its encouraging me to spend. Regardless of whether I can afford it or not.

Credit cards are the same – they even give you a total amount of money you can spend that’s not even yours! And worse, you’re paying for the privilege of using the bank’s money (credit card interest adds up).

Why is this important?

All too often we spend too much and live beyond our means, regardless of how much we earn. And, I think the lie of “available funds” are often to blame. Seeing ‘available’ all the time gives us a false sense of security that we can spend spend spend. Particularly when you don’t look at what we already owe on our credit cards.Safe spending for blog copia

The act of spending joyfully

Yes budgeting is the dirtiest word in the word in the financial language but its key to Spending Joyfully aka within our means. So we have created our simple and sexy way of helping you, with our brand new Mobile App and its fabulous new feature “Safe Spending”. It’s automated and also extremely easy.

Here’s how it works.

  • Your Income
  • Minus your future commitments (Bills)
  • Minus Your saving Goals (You set this)
  • Minus what you have spent
  • What’s left = Safe Spending or your Spend Joyfully fund


Using Safe Spending has made managing my money so so so much easier. I know how much I can truly afford anywhere I go and I love the power this knowledge has given me.  I’ve never been good at budgeting (too much hard work) but now I understand what it means to Spend Joyfully and it feels great.

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Peter is the Founder of MoneyBrilliant, stupidly optimistic and believes he can help change the world by empowering everyone through better money management.

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