Inventory. You might not think of it this way, but we all have inventories. Be it dishes in the cabinet or clothes in the drawer, we all have multiple of something. In accounting, that’s known as inventory.
There are two popular methods for managing inventory: FIFO and LIFO. Starting with the latter, LIFO stand for “Last-In, First Out,” meaning you use the most recently acquired thing first. The opposite is FIFO, wherein the first asset in is the first asset to be used.
Although there are a number of accounting benefits to preferring one over the other in terms of finances and one’s books, in general usage practice, FIFO is a great mantra by which to live. In doing so, you ensure your things get worn more evenly and variety is the norm.
Some examples of things you can FIFO: dishes, cups, tee shirts, socks, etc.
So, next time you want to re-organize or process your personal inventory and bring balance to your belongings, remember to apply FIFO.
More on managing inventory in accounting: https://www.accountingcoach.com/inventory-and-cost-of-goods-sold/explanation