A User's view of Hledger

Learning about hledger

Relativity in personal finances

Some things in life are relative. Yes, there are absolutes, but there are also things that are relative. And, if something is relative, what specifically is it relative to? Perhaps it can be relative to multiple things, in which case, what is the most useful comparison to make?

In personal finances, for example, you can consider your spending relative to your income. Other approaches would be to consider your spending relative to other people’s spending or even relative to your desires.

The better plan is to spend relative to your income. A quote from Charles Dickens illustrates the wisdom of this approach: “Annual income twenty pounds, annual expenditure nineteen six, result happiness. Annual income twenty pounds, annual expenditure twenty pound ought and six, result misery”.

If you are tracking income and expenses in something like plain text accounting, then you have the tools to see your expenses relative to your income. In hledger, for example, I often use the incomestatement command. It gives me a quick overview of my expenses relative to my income. This view helps me keep my focus on the important.