I sometimes get so caught up in theoretical discussions like this one that I forget to look after myself. Today I sat down and created a spreadsheet model detailing my personal finances. It looked something like this:

With the Red side my personal balance sheet in SGD, and the Green side the same balance sheet in USD. Because I don’t need to conform to GAAP I have a lot of freedom to make my personal accounting make sense: for example, I completely did away with the income statement, because I know I am “profitable” (i.e. I earn more than I spend) and don’t need to do a valuation on myself. Instead I simply keep a rough cashflow statement, make sure it tallies up with my bank transaction histories, and I’m good. I also took stock of where my asset allocation really stands, ...