Accounting may not be something you would necessarily associate with life lessons and happiness. But if you examine the aspects of your life, you can definitely relate them back to accounting. Let us show you how…
There are many things in your life that you would consider assets. We don’t just mean the financial assets like houses and cars, but the things that make your life richer. The people you know and love, the places you go, the things that have value and fulfil your needs.
Assets are the things that add money and value to your life. Like in accounting, if you gain more assets (positive influences) then your life will have more value.
These are the things that you would rather not have in your life. Poisonous relationships with people, credit card debts, mess and disorganisation. Liabilities like money or value out of your life, so are your negative influences.
Some people have different views on what makes an asset or a liability. Some would view a car as an asset as it helps you get to the places you need to go. Whereas others would view it as a liability because it takes money out of your monthly budget for petrol and maintenance costs.
It is these ‘assets’ that can cause people to fall behind in life. They are investing in things that they think will add value to their life, but they actually end up taking value away. The car is just an example of how this theory works. There are many things that would fall into this questionable category. If more people were to look at each purchase they make in this way, they may find they have more disposable cash to play with.
You can sum your happiness up by looking at the accounting terms of revenue and expenses. Your revenue is the things that make you happy, great friendships, a successful career, a great cup of coffee, or anything that lights a passion and fire within you. Whereas your expenses are the things that take a toll on you - stress, a job you hate, being stuck in traffic, anything that annoys you and takes happiness from your life.
To keep from going bankrupt in the happiness stakes, you need to make sure you don’t have too many expenses on your happiness. Instead, fill your life with revenue and the expenses will not be able to get you down!