Accounting Solver

ACCOUNTING FOR LIVING 5

by ren on June 2nd, 2008

I’ve always maintained that accounting is also for business. It’s concepts, relationships among accounts, system of balances are applicable in almost anything in life.

Accounting Solver presents a Balance Sheet for Living:

Just like Cash in a business Balance Sheet, Health in the Balance Sheet for Living is much affected by Liabilities. And, the most important item in the Liabilities side of the Balance Sheet for Living is Stress.

Keeping up with the Joneses is a great contributor to Stress. It pushes you into Conspicuous Consumption (e.g., a gas-guzzler luxury car instead of a cost-efficient model, designer clothes, etc) –which increases your Bills & Obligations and makes for great Stress. On the other hand, if you keep your Consumption within reasonable & affordable levels, you will decrease pressure on your Bills & Obligations and save yourself from unnecessary Stress. Conspicuous Consumption also pushes you to spend more of your Time asset in Work –taking away beneficial Time with your family & friends and Time for yourself.

image from Microsoft Clipart, graphics by Ren Garcia

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POSTED IN: Accounting Concepts, Accounting for NonAccountants, Balance Sheets, Liabilities, Random Thoughts on Accounting