Living Your Life Like It's A Business

[trevi]

It seems there is not much difference in accounting for small business versus personal finances.

View: https://youtu.be/cv_cXHVa0xU?feature=shared


My main reasoning for looking at my personal finances as a fictional business is to help me focus on accumulating assets and lower liabilities.

If I go out to a movie, or dinner or take a trip to the coast, it does not add to my assets, instead it adds to my liabilities. I have easily spent over 10k on firearm related purchases in my lifetime. My collection could worth 5k now. If I had spent 10k on movies, eating out and trips to the coast, how much asset value would I have remaining from those experiences? Near zero, unless I took home flatware, extra sauce packets or found whole sand dollars. Sure I may have memories from eating out or seeing a movie in the theater. More likely than not, the memories would be of getting ripped off with high prices.

If I start looking at all my purchases through this lens, it should help prevent me from spending too much money on highly depreciable items and worthless experiences.

A trip to the coast that involved buying some great deals along the way might be a better way to justify a trip.

There are going to be expenses in life that don't add to asset values. I have to eat, I have to live under a roof, pay taxes, etc, to remain productive. The less I can spend on those things, the more I can spend on assets that will hold some value.

You make and raise a valid question. I went through this moment and i am still there. It led me to live a more simple, boring, and minimalist-in-the-process lifestyle. I work more than play and cash out PTO at the end of work contract. I save more and invest in CDs and have strategic purchases. I'll be watching those video links.

 

[arakboss]

You make and raise a valid question. I went through this moment and i am still there. It led me to live a more simple, boring, and minimalist-in-the-process lifestyle. I work more than play and cash out PTO at the end of work contract. I save more and invest in CDs and have strategic purchases. I'll be watching those video links.

For me, I know from long term experience that I can not live life without spending money. Knowing that, I want to be more careful about what I spend my money on.

Successful small businesses tend to spend money on things that will help the business be profitable, grow, increase the value of the company, etc. It would be great if I can do those things for my personal net worth, while still spending money.

I wish I enjoyed investing as much or more than shopping but that's not the case. Short term trading could be a semi-passive way to grow my net worth. I don't have the stomach for it though. Instead I will keep working 60+ hours a week and try to reduce my spending on items that have no long term value.

 

[Jay Walk]

Uuuuhhh... mmmmmkay

 

[pogi]

Good concepts, unfortunately, Americans tend to be poor business people in general.

 

[arakboss]

Good concepts, unfortunately, Americans tend to be poor business people in general.

If the only choices I make are to buy ammo instead of eating out, I will be ahead of where I am now. Ammo doesn't seem to depreciate that much these days.

Edit: I bought a 1000rnd case of 9mm ammo from Bimart for $235. An overnight trip to the coast with meals out would have cost much more than the ammo. I could easily sell the ammo for $200. I doubt I could sell the memories from an overnight coast trip for $.02

 

[jayR]

Maybe consider generating some income by renting your cabin out. It would create some cash flow as well as provide a deterrent to vandalism/theft. Prior to my divorce I had a cabin by Odell lake and could always turn some $ renting it out.

 

[Meridian7750]

If the only choices I make are to buy ammo instead of eating out, I will be ahead of where I am now. Ammo doesn't seem to depreciate that much these days.

Edit: I bought a 1000rnd case of 9mm ammo from Bimart for $235. An overnight trip to the coast with meals out would have cost much more than the ammo. I could easily sell the ammo for $200. I doubt I could sell the memories from an overnight coast trip for $.02

Honest question…
Why do you NEED to spend money on something?
Your premise sounds like "I'm helpless to control my need to spend, so what trinkets are going to hurt my financial situation the least".
I'm trying to understand, and not be critical. Hey, it's your life and your $$.
Being very frugal myself, I guess I just don't understand or align with your spending addiction.
Sorry if that sounds harsh…no intention to offend.

 

[arakboss]

Maybe consider generating some income by renting your cabin out. It would create some cash flow as well as provide a deterrent to vandalism/theft. Prior to my divorce I had a cabin by Odell lake and could always turn some $ renting it out.

I drive by Odell Lake every time I visit my cabin property. The homes on the opposite side of 58 from the lake always seem well occupied.

I thought about renting it out but it's not practical for me. It's in rough shape too, only slightly nicer than sleeping in a tent. I love it myself but like firearms, food, cars and just about everything else in my life, I have low standards. I spend most of my time out in the forest when I am down there anyways. The cabin keeps me warm and my stuff dry that's about all it's good for.

Since the last time it got broken into, I haven't been leaving anything down there so all amenities need to be brought in every trip. It's not a good rental situation.

 

[arakboss]

Honest question…
Why do you NEED to spend money on something?
Your premise sounds like "I'm helpless to control my need to spend, so what trinkets are going to hurt my financial situation the least".
I'm trying to understand, and not be critical. Hey, it's your life and your $$.
Being very frugal myself, I guess I just don't understand or align with your spending addiction.
Sorry if that sounds harsh…no intention to offend.

If I knew why maybe I could fix it. Some people don't need to eat beyond sustainable amounts. Some people feel bad if they don't exercise. Some people like to gamble. The way the mind works is very complicated and answers aren't always easy to come by.

 

[Meridian7750]

If I knew why maybe I could fix it. Some people don't need to eat beyond sustainable amounts. Some people feel bad if they don't exercise. Some people like to gamble. The way the mind works is very complicated and answers aren't always easy to come by.

Fair enough.
Good luck, I hope you find a sustainable balance between your needs and your wants.
I guess in a way, we are all looking to strike that balance.

 

[jayR]

If you want to run your life as a business you may want to consider dumping it. Like airplanes, boats, recreation properties, and horses unless they provide some non quantifiable benefit the drain on mere possession of them are costly and stressful. Having a safe full of junkomatics would be a bargain.

 

[arakboss]

If you want to run your life as a business you may want to consider dumping it. Like airplanes, boats, recreation properties, and horses unless they provide some non quantifiable benefit the drain on mere possession of them are costly and stressful. Having a safe full of junkomatics would be a bargain.

It's my back up plan to live there if things go south here. Property taxes are low ($150 a year) and it makes for very cheap vacations.

 

[pogi]

It comes down to cost benefit analysis, evaluation of one's time, and discipline.

 

[CountryGent]

Instead I will keep working 60+ hours a week and try to reduce my spending on items that have no long term value.

Those hours you are away from your wife and children will never come back though. Children grow up and move away. And spouses won't always be with us. It is a harsh truth, but true nonetheless. Naturally, you must find that balance for yourself, and I wouldn't be qualified to make that call. Just a thought from a fellow who found himself holding his wife's hand in the hospital, reading to her from the Psalms, on a very cold night.

 

[trevi]

For me, I know from long term experience that I can not live life without spending money. Knowing that, I want to be more careful about what I spend my money on.

Successful small businesses tend to spend money on things that will help the business be profitable, grow, increase the value of the company, etc. It would be great if I can do those things for my personal net worth, while still spending money.

I wish I enjoyed investing as much or more than shopping but that's not the case. Short term trading could be a semi-passive way to grow my net worth. I don't have the stomach for it though. Instead I will keep working 60+ hours a week and try to reduce my spending on items that have no long term value.

Well, sir, the first thing is to admit youe faults, if considered so. Then the next thing to try to do is seek a resolve, when you're ready. Having the support peers can make a difference.

I adapted my way of life because i like freedom more than burden.

 

[trevi]

If I knew why maybe I could fix it. Some people don't need to eat beyond sustainable amounts. Some people feel bad if they don't exercise. Some people like to gamble. The way the mind works is very complicated and answers aren't always easy to come by.

There is a solution to every real world problem, the question is, are they ready for the revelation? The intervention? I saw where i was going with my gun collection and did not like it. While i was able to turn a profit, the constant buying did keep me from other interest at that time, which i can never get back. No regrets! But i was ready for less.

 

[arakboss]

For me, I know from long term experience that I can not live life without spending money. Knowing that, I want to be more careful about what I spend my money on.

Successful small businesses tend to spend money on things that will help the business be profitable, grow, increase the value of the company, etc. It would be great if I can do those things for my personal net worth, while still spending money.

I wish I enjoyed investing as much or more than shopping but that's not the case. Short term trading could be a semi-passive way to grow my net worth. I don't have the stomach for it though. Instead I will keep working 60+ hours a week and try to reduce my spending on items that have no long term value.

This is one reason why I don't have a stomach for day trading. How many used guns have you bought that went down in value 40 percent in one morning?

HelloFresh shares dive 42% after meal kit giant warns on outlook

Analysts at UBS described HelloFresh's outlook for 2024 as "far worse" than anticipated.

www.cnbc.com

 

[Certaindeaf]

This is one reason why I don't have a stomach for day trading. How many used guns have you bought that went down in value 40 percent in one morning?

HelloFresh shares dive 42% after meal kit giant warns on outlook

Analysts at UBS described HelloFresh's outlook for 2024 as "far worse" than anticipated.

www.cnbc.com

Any "business" or product advertised on YouTube is a ripoff scam and since you asked, would one have to suddenly have to pay $40+ for each transfer on each $100 gun in the future would approximate that hit. Code for you might not always work at a pawnshop.

 

[arakboss]

Any "business" or product advertised on YouTube is a ripoff scam and since you asked, would one have to suddenly have to pay $40+ for each transfer on each $100 gun in the future would approximate that hit. Code for you might not always work at a pawnshop.

Good point about cheap guns and factoring in transfer fees. From what I have seen is there seems to be a price floor on most guns, even hi-points, regardless of transfer fees.

I am in a good position for buying myself with reduced transfer fees. That is one of the main reasons I have bought so many during the past year or so. I would consider it an important part of my fictional business strategy to keep that cheap transfer train going.

 

[arakboss]

Any "business" or product advertised on YouTube is a ripoff scam and since you asked, would one have to suddenly have to pay $40+ for each transfer on each $100 gun in the future would approximate that hit. Code for you might not always work at a pawnshop.

That raises another idea. Maybe I should buy more firearms that have a significant percentage of their value in the non-ffl parts. Glocks and ARs would be in that category. That way if the ATFers pass their rule change restricting sales of firearms or transfer fees go through the roof, I could still get some of the value back. Maybe I should just stick with collecting parts and eliminate FFL cost/troubles all together?