The very first formula you learn in Accounting class is the one for profit. It is a simple one and yet it is what every company in America chases after.

Profit = Income – Expenses

See, it’s not rocket science. Logically, to increase profit (i.e., left over money) you need to have greater income, less expenses or a combination thereof. So what does this have to do with balancing your life?

I’ve found that this same formula can be applied to all aspects of your life. Finances are the classic first stop.

Financial Independence = Income – Expenses

In order for you to have a greater degree of financial independence, you need to earn more, spend less, or a combination thereof. Simple concept but it is amazing how many people just don’t do it. For years I was the same way (see the earlier post on financial balance). We spent more than we earned. The way we solved our debt issue was simply to spend less, earn extra money and pay down our debt. With all of our non-house debt gone, we have greater financial independence.

Weight = Caloric Intake – Caloric Burn

Your weight is combination of how much you eat vs. how much you use. If your intake is greater than your burn, your weight goes up. So to lose weight, either eat less, exercise more, or a combination thereof. Yet there are thousands of products out there that tell you that you can ignore the above formula and still lose weight.

Free Time = 24 hours in a day – Time working

This is a trickier formula to manipulate since one of the factors is actually a constant. You cannot increase the number of hours in a day, so the only way to increase free time is to reduce time working, which leads back to the financial independence formula above.

Love Received = Love given – Selfishness

The love that you receive from someone, be it a child, spouse, friend, family member is generally based the love you give them less the amount of self you keep from them. In essence, if you wish to be loved more you can either increase the amount you love someone or decrease what you take from them.

Now these formulas are a general example of the concept but I think you get the idea. They are simple representations of what we already know. So why is this so easy to understand but so difficult to actually employ? We all know that if we eat too much, we’ll put on weight, and yet that is exactly what we do. We even feel guilty about it but still do it. Same with finances or free time. No one wants to work 60 hours a week, especially considering the lack of what you have to show for it. Yet we still do it. In fact we convince ourselves that we have to do it to survive. Our inner resistance is weak and we fall into bad habits. The habits continue on, sometimes for years until a crisis occurs forcing us to deal with the issue.

Don’t wait for a crisis to occur. Take stock in your life right now. Look at the incomes and expenses and decide right now what needs to be adjusted. Whether it is finances, weight, relationships, or your spiritual life, take time right now to do a serious self-evaluation and discover where you need to make adjustments. If you are too close to the subject, talk to a trusted friend or spouse and do your best not to be defensive. A shared goal or burden is much easier to accomplish.

I mentioned in an earlier post how my wife and I focused on our debt and eliminated it, now we are focusing on our fitness. One day at a time we are creating our ideal life. Try it yourself; you can only become better from it.