Conversions

Mark every spot where the thing you are tracking changes form, and record what fraction disappears in the swap. Unlike a plain outflow, the quantity does not leave the system; it becomes a different, usually less valuable, kind of the same thing.

Mark every spot where the thing you are tracking changes form, and record what fraction disappears in the swap. Unlike a plain outflow, the quantity does not leave the system; it becomes a different, usually less valuable, kind of the same thing.

Example

In the household budget month, gross pay of $6,200 converts to $4,430 net after tax and deductions. Another conversion: $500 charged to a rewards card came back as points you value at $340, a 32 percent loss you had been counting as cash back.