Balance Sheet

Two weeks ago I had a real life lesson about balance sheet. It is tempting to change the 'ee' of the sheet to 'i', because when the deficit beacons, it can not be helped.

The present day is crunch time for me, with two college students, one in elementary, and with my other half pursuing her Ph.D., high gas prices, and irrationally high food (rice) prices, inflation,...; so I have to be on my toes. I have to revisit accounting 101,(and with no back ground in business or economics, because curriculum experts failed to include that in chemistry course), and have to be contented with the simple income statement.

The balance sheet is only between income and expenses. When I was introduced to the world of business, a chinese friend advised me to watch my expenses. That I should not spend more than I earn. He also shared to me the chinese secret-that everyone knew- to save at least 10%, if I cannot afford the suggested 20%, of my income. Obviously, I only remembered my friend today when time is difficult. Had I followed his advice, John Gokongwei Sr. should be proud of me and this economic malaise will not affect me.

Anyway, it is never too late. So I listed all my expenses (like most people I don't have a journal of expenditure so I have to estimate some from memory), posted it against my income. The result is as expected. My expenses is more than my income. Luckily for me, it is almost even, maybe because I based my data not from a year on year or month on month record, but from the recent expenses.

This is also my mistake as a micro entrepreneur, and perhaps most other micro entrepreneur. One major reason why only a handful would make the jump from micro to small to big.

I now have my record.