The word audit makes most people cringe.
There’s not much reason it should. When you type in “audit” in google, this is what comes up:
an official inspection of an individual’s or organization’s accounts, typically by an independent body.“
When you’re in business for yourself, you can count on being audited several times.
Government agencies loves audits, and not just the ones people immediately think of.
I’m not talking about that kind of audit. I’m talking about personal audits.
You’re not independent of yourself and you never will be. You still have to audit yourself.
The alternative is self-imposed slavery.
Everywhere I look, I see people who don’t know where they’re going in life.
They say, “I’d love to live on my own terms, but I don’t know how!”
Most of the time, they have an idea of what they want to be and are lying to themselves.
Sometimes, though, the slave mentality is so ingrained in them that they’ve never really thought for themselves.
Good news: I’m going to help you break those chains you put on.
It starts with a personal audit. First we’ll talk about what that is, then we’ll cover how to do it.
Don’t worry, this is simple. A lot simpler than living a life of slavery.
What happens in an audit?
Nothing, if you’re smart and have an accountant for things like that.
The last time my business was audited, I didn’t even meet with the man from the agency that audited me. They met with my accountant, who had all the information they needed.
But this is not a financial audit. This is a personal audit.
In an audit, everything is frozen. Usually, the freezing is more theoretical than real. The auditor wants to see the numbers as if everything stopped at a certain date and time.
In the case of a personal audit, you’re looking at your life as it is right NOW. The future hasn’t happened yet and the past isn’t real anymore.
Assets and Liabilities
In a business, everything is an asset or a liability.
This is true of your life as well.
Everything is either an asset or a liability. You’re either moving closer to reaching your goals or you’re not.
Assets are parts of your life that enable you to live the life you’ve always wanted.
Liabilities are parts of your life that keep you bogged down and prevent you from living your dreams.
People have a hard time separating themselves from their emotions, but this is a necessary part of growth.
We want to remain in delusion. Lying to ourselves is easier than brutal honesty.
If you want your life to be better than it is right now, you have to accept the pain and work through it.
In the financial sense, assets are offset by liabilities and the difference between the two determines equity.
The best example for most people is “homeowner’s equity”, which is ridiculous. Home ownership is a scam.
For the purpose of this discussion, it’s still useful.
You were tricked into taking out a mortgage and buying a house because you’re supposed to. You make payments on your expensive mortgage.
The difference between the value of the home and your mortgage is your equity in the house.
Equity is ownership.
Understanding Personal Equity
In the personal sense, all we care about is equity. If an asset isn’t providing enough gain to offset the associated liability, cut it loose.
There are a lot of things in life that add great benefit to your lifestyle.
A lot of these things are more of a liability than an asset. A big house with a big mortgage is a good example.
Everybody thinks they want to live in a mansion. Look at all the happy couples buying million dollar homes on credit.
They don’t show you these happy couples three years later when they’re miserable and broke as a joke.
If they wanted to get ahead, they’d ditch the ritz and live a higher quality life elsewhere. They’d have more personal equity – they’d own their own life.
The “That’s Too Bad, Man” Effect
You work a job you think you need. After all, you have to pay your expensive mortgage. It’s too bad you didn’t realize you couldn’t afford it.
You work 8 hours a day in corporate hell and letting big papa boss man keep most of what you earn. When you ask him for a better position with more pay, he denies you.
As you shuffle out of the office with your tail between your legs, he chuckles and says, “That’s too bad, son.”
When you bitch about your mean boss to your wife that doesn’t fuck you anymore, she’ll say, “That’s too bad, dear.” She’s been fucking your mean boss for the past four years, and that’s too bad too.
When some kid fresh out of college climbs the corporate ladder faster than you did in less time, you seethe behind your computer. On the way to his big, new office he pats you on the shoulder and says, “Too bad, Brad.”
When you’re wasting away on the weekend drinking beer with “friends”, you realize you hate these guys. Guys who are just as miserable as you and want you to stay that way. That’s too bad.
At least you get to spend your 25 mile commute in the latest model luxury car. Too bad you’re also in debt for that, too.
Too bad you need that job, huh?
That’s probably what the guys will say when you’re fired from that job you need.
That’s too bad, man. Beer me? The game’s about to start!”
It’s like nobody cares.
See, your friends and your wife and your boss know something you don’t.
They know you hated that job and you stayed there anyway. That’s why they don’t respect you.
They know you’re a coward who wouldn’t audit his life and say, “Fuck this, I quit.”
The easiest four words you never said.
The Cure – Audit Your Life
The goal in a personal audit is to weed out the liabilities that don’t come with greater assets.
Saying, “Fuck this, I quit” and throwing away everything that isn’t bringing you closer to your goals.
That’s not being a quitter.
That’s being a fucking man.
Physical assets have to be bought. Personal assets have to be earned.
Some liabilities are assets in disguise. Some days, you’re too sore from the gym to work. All your body wants is sleep.
That’s sweat equity. Push through and do what needs to be done today.
Just do the work.
When your back and your bankroll are both bulging, you won’t stress that little liability anymore.
Something isn’t a liability just because it isn’t easy. It’s only a liability if it moves you further from your goals.
How To Audit Your Life
List every major factor in your lifestyle that is within your control. Don’t lie about whether you control it or not.
Your job, your marriage, your mortgage, your kids, your girlfriend, everything.
Make two columns, assets and liabilities. Start to see which asset is connected to which liability.
Start seeing which liabilities have little benefit and start weeding them out.
Is your job a dead-end time-suck you hate? Gone.
Is your wife a soulless hag you secretly loathe? Gone.
Are you paying a mortgage on a house you can’t afford? Gone.
Is your adult son a dead beat junkie? Gone.
Is your girlfriend a manipulative mooching cunt? Gone.
Stop letting societal pressure keep you in a miserable existence.
Forget what you’re supposed to do and start doing what you were meant to do.