Sedj on Nostr: GM nostr. Moving between different accounting models. I had been very focused on ...
GM nostr.
Moving between different accounting models. I had been very focused on visualizing everything through the fiat paradigm of assets, liabilities, and cash flow. I did budgeting, again in the standard fiat sense, taking my monthly fiat mine income, deducting my monthly expenses from it, and based decisions on whatever was left over each month.
Now I'm rethinking this. I'm looking at total net worth, total savings, ratio of savings to net worth, total expendable, total monthly liability, and months of runway, all in bitcoin terms. As long as I have x months of runway (let's say 6) as expendable wealth, I can save everything else. I'm able to extend that runway as well as savings through additional debt. You might notice that monthly income isn't represented. This is because it isn't assumed until realized. I could probably factor it in to my runway estimates as a forecast if I wanted to.
This approach is based off lots of ideas I've taken from Mark Moss, Michael Saylor, and others. I am completely divorcing myself from living paycheck to paycheck, and ramping up to take full advantage of this fiat debasement cycle.
Moving between different accounting models. I had been very focused on visualizing everything through the fiat paradigm of assets, liabilities, and cash flow. I did budgeting, again in the standard fiat sense, taking my monthly fiat mine income, deducting my monthly expenses from it, and based decisions on whatever was left over each month.
Now I'm rethinking this. I'm looking at total net worth, total savings, ratio of savings to net worth, total expendable, total monthly liability, and months of runway, all in bitcoin terms. As long as I have x months of runway (let's say 6) as expendable wealth, I can save everything else. I'm able to extend that runway as well as savings through additional debt. You might notice that monthly income isn't represented. This is because it isn't assumed until realized. I could probably factor it in to my runway estimates as a forecast if I wanted to.
This approach is based off lots of ideas I've taken from Mark Moss, Michael Saylor, and others. I am completely divorcing myself from living paycheck to paycheck, and ramping up to take full advantage of this fiat debasement cycle.