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Bookkeeping for your Personal Finances C2online
Bookkeeping is not just limited to business owners—it’s a good idea to apply the same
bookkeeping principles to your personal finances. Consider yourself the Chief Operating
Officer of your own company (you).

Think of yourself as a business; the value you bring to the organization (your life) and
the profit you make (your salary). You need to spend money on goods and services like
food, shelter, gas, clothes, recreation and so on (raw materials) to keep your business
(you) running. You may participate in continuing studies (investment) so you can
increase your profit (promotions and higher salary). You may donate to the needy or
to your church (corporate social responsibility) and pay taxes and save money for the
future (net profit).

The majority of businesses (people) want to earn more. To achieve that, you can
increase sales (output or responsibility) by investing more (acquire new skills or set up
new income channels) or minimize costs (standard of living and expenses) by cutting
unnecessary assets (luxuries) or processes (hobbies or habits), reducing unprofitable
products or services (outings or habits), or firing incompetent people (destructive friends
or colleagues) so the organization (you) becomes the proverbial tight ship.

These things are all transactions and have to be accounted for if you want your
personal finances and life to be in good shape. Being able to track your income and
expenses allows you to see which resources (your money) of your business (yourself)
are not being maximized or worse, being wasted. You don’t need to be a bookkeeper—
just incorporate these principles into your life. You’ll be surprised how much money,
time and resources are being wasted. Start tracking your life today!

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