Treating personal finance as business finance

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I'm an investor. That mean I invest in direct equities without mutual funds. Every quarter (for every three months) companies release their mandatory results audited as directed by SEBI(Securities and Exchange Board of India). These results help investors determine if their investment in that company is worth it.

Our goal to FIRE is achieved when we compare our results, just like companies compare theirs. Every quarter is a milestone and knowing the numbers that we saved, that we spent, that we earned will do good. Because as humans we have tendency of over estimating the things that we like or we do most.

When it's done properly, we can see the fruits of our efforts towards FIRE. Let me explain you with an example, let's say we have started to measure this from September 2019. In this year we calculate our july-aug-sept finances.

We need to compare our finances on quarter on quater basis(qoq) and year on year basis(yoy). You will compare current results with the previous quarter result and also you will compare the previous year same quarter results. And every aspect of change should be noted in percentage terms and we must be answerable to the those changes.
Answers like if there is growth, what did we change from previous quarter and can we keep doing it every quarter. Ask yourself if this is one off. And if there is degrowth, understand why did that happen? What can be avoided so that same thing can't be repeated. Some expenses are cyclical or seasonal. In apr-may-jun quater there might be heavy consumption of electricity due to AC turned on at night. So electricity bills will be high compared to jul-aug-sep quarter.

Like business have few things which are measured in quality not quantity like brand value, good will, etc personal finance should also have quality of life, memories well spent with family, peace of mind etc. Always remember why we started FIRE, it's ultimate goal is to have freedom to spend your time, the way you want. Not to have lot of papers that government prints and says it has value. 

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