📅 2025-03-14 — Session: Developed Personal Finance Tracking System Framework
🕒 20:20–20:50
🏷️ Labels: Personal Finance, Accounting, Financial Tracking, Balance Sheet, Wealth Tracking
📂 Project: Accounting
⭐ Priority: MEDIUM
Session Goal
The session aimed to explore and develop a comprehensive framework for personal finance tracking, focusing on differentiating between liquid assets and theoretical wealth.
Key Activities
- Discussed strategies to avoid double-counting in financial transactions, emphasizing the importance of distinguishing between debt changes and account balances.
- Explored a two-level financial tracking system that separates actual liquid assets from theoretical wealth.
- Explained a hybrid accounting approach combining cash and accrual accounting methods, applicable to both personal and broader economic accounting.
- Provided guidance on aligning personal finance tracking with standard accounting practices, including balance sheet creation and liability categorization.
- Outlined a structured personal accounting system, incorporating balance sheets, monthly flow tracking, and cumulative running balances.
Achievements
- Developed a clear framework for personal finance tracking that integrates various accounting methodologies.
- Clarified the process of aligning personal finance practices with standard accounting techniques.
Pending Tasks
- Implement the developed framework in a practical setting to evaluate its effectiveness and make necessary adjustments.