[Book Review] Life Accounting by Professor Hsu En Te:How to Measure Resources then Cut loss,Reinvest and Compound Interest ?

“Life Accounting(人生會計學)”[1] is primarily authored by Professor Hsu En-Te (許恩得) of Tunghai University, treats the individual as a “Life Corporation.” It applies professional accounting frameworks to personal development to help people move from “high income, low surplus” to a state of holistic wealth.

+ Where am I ?

Balance Sheet:

To know where you are, you must perform a Personal Audit. In accounting terms, this is your “Balance Sheet.”

Assets, Liabilities, and Equity represent a company’s financial position at a specific point in time.Measure with

$$ Asset = Liability + Equity $$

• Assets(Resources): Time, Health, Relationship, Money, Belive, Knowledge (Resources to apply).
• Liabilities(Obligations): Stress,Responsibility,Commitment such as Bad habits, toxic relationships, and “time-debts” (commitments that drain you without return).
• Equity(Owner’s Stake): Your true self-worth after subtracting the things that hold you back(The freedom remaining).

Outcome Definition of the Balance Sheet

• Asset Aspect: What resources do we have?
• Financing Strategy: How is all this resources come from?
• Financial Risk and Structure: If our Financial Structure could last?

Income Statement:

Revenue and Expenses measure performance over a period, with

$$ 𝑃𝑟𝑜𝑓𝑖𝑡/𝐿𝑜𝑠𝑠=𝑅𝑒𝑣𝑒𝑛𝑢𝑒−𝐸𝑥𝑝𝑒𝑛𝑠𝑒𝑠. $$

• Revenue(Income): Inflows or increases in economic benefits from Revenue & Gains(Ability to Create Positive Value).
• Expenses & Loss(Costs): Costs incurred to generate revenue and keep the business running, which decrease net assets(Cost Worth).

Outcome Definition of Income Statement

• Gross Profit & Operation Profit : Verify Core Competitive ability
• Non-operating Items & Taxes : Challenge form outer Threaten
• Net Income: the conclusion of the management

+ Who do I want to be ?

The author think before we do do any thing we need to know where to go so he developed a Goal model to find the goal.

ps: I figure out is so similar to ikigai diagram so why not compare it together.

• Dream: What I want to be ? = What I Love ?
• Need: What I should solve ? = What the world Need?
• Resource: What I can do ? = What I good at ? What I can be Paid for?

---
title : Ikigai Diagram
---
flowchart LR
LV[What I Love?]
GD[What I Good At?]
ND[What the World Need?]
PD[What I can be paid for?]
LV-->|Passion|GD-->|Profession|PD-->|Vocation|ND-->|Mission|LV

---
title : Goal Model
---
flowchart LR
WT[What I want to be?]
CN[What I can do?]
SD[What I Should solve?]
WT-->|Mission|SD-->|Chance|CN-->|Vocation|WT

So I already find my Ikigai : Purpose of life and I think is similar to what indicate as goal here. If you want to find your ikigai you can use my prompt for AI assumption.

My ikigai will be Calm Tech. I guess that’s it. you can try to find yours by this prompt.

+ Why I always failed ?

Failure usually stems from a Deficit in Operations. If your “expenses” (effort spent on distractions) exceed your “revenue” (progress toward goals), you go bankrupt emotionally or professionally.

• Sunken Cost Fallacy: You keep doing something because you’ve already invested time, even if it’s no longer “profitable.”
• Bad Resource Allocation: You are spending “High-Value Time” on “Low-Value Tasks.”
• Cash > Debt

+ When to make change ?

Check List

• Whether my Assets are Appreciation or Depreciation?
• Whether my Liabilities are Managed and Pay Off?
• If my every day Expensses brings actual Income ?
• Whether my Long term life is Profit or Loss?

+ What Actions Should I Take ?

To gain, you must optimize your Personal Cash Flow.

• Cut the Losses: Aggressively remove “Liabilities” (habits or people) that drain your energy.
• Reinvest: Take your “surplus” time and invest it in “High-Yield Assets” like new skills or physical health.
• Compound Interest: Small, daily actions (1% gains) don’t look like much today, but they compound into massive life shifts over time.

+ Reference

1. 提升幸福感、成為理想自我的人生會計學：盤點現狀，打造幸福未來！, 許德恩, 2026/02/05, ISBN-9789570879582
2. The Unfair Advantage: How Startup Success Starts With You, Ash Ali & Hasan Kubba,2020/01/09,ISBN-9781782835974
3. CliftonStrengths,Don Clifton,2001
4. Goal-setting theory,Edwin Locke,1960s