Personal Finance Planning and the Power of Accountability

Personal finance planning success requires a lot of hard work, and there’s no reason why you should do it alone. When you think about it, even if you can accomplish some great things on your own, how much more could you accomplish if you had someone holding you accountable to do your very best at all times? That said; let’s look at some simple ways you can get some accountability behind you when it comes to succeeding with your personal finance planning…

Getting Help with Your Personal Finance Planning

One of the personal finance planning tips, which I give people, is to have a weekly or monthly meeting to evaluate the amount of progress made towards achieving their financial goals. All we are going to do now is just add one simple step to make sure that you evaluate your financial goals for the month and map out a plan for the next month. That simple step is to have someone to go over the progress with you.

The person may not be a financial expert, or contribute creatively towards the structuring of your financial plan, but just having someone there will give you a greater sense of responsibility. This is because at some level all of us are motivated by the drive to live up to the expectations which others have of us, which can be a good thing or a bad thing.

In this case, if you choose someone who supports you in accomplishing your financial goals and who will not allow you to slack off, the need to live up to expectations will work in your favor.

Who Will Be Your Personal Finance Planning Coach?

As you’re selecting someone to hold you accountable for sticking with your personal finance planning goals, it’s important that you choose someone who isn’t too close to you such as your spouse. Instead, choose someone who will be objective enough to give you candid feedback and who will hold your feet to the fire without worrying about how it will impact your relationship with them. Also, don’t worry about whether or not the person has financial expertise.

This person’s function is simply to hold you accountable; the planning is up to you. As you work with your accountability partner, you’ll find that your commitment to your goals will increase and you’ll achieve them much faster than you could have on your own.

Are You Making These Critical Errors in Your Personal Finance Planning?

If you want to succeed in your personal finance planning, there are a few key errors you have to avoid. After many years of experience in building wealth, managing personal finances and in coaching others, I’ve found that there are a few common errors which people make. If you want to make sure that you don’t fall prey to these, this article will show you how to spot them and how to avoid them.

#1: No Written Plan

One of the first principles of Powerspending is having a clearly written goal as to where you want to be in the next year or the next five years. In addition to this, you need to have a clearly written plan as to how you’re going to achieve your goal. Failure to plan is planning to fail, and if a plan isn’t written down, it’s more of an idea than it is a plan.

#2: Making Exceptions

This is one of the greatest enemies of success. Most of the time, people will stick to their commitments until they make a small exception to their plan. Once this happens, it’s not long before the exception becomes the norm and before you know it you are far off track wondering what happened. Never underestimate the subtle power of one small exception, but stick with your plan as if your life depended on it.

#3: Lack of Accountability

Making yourself accountable to someone else will always increase your chances of success. Even if you are already doing well on your own, you have everything to gain from teaming up with an accountability partner. I suggest that you find someone who is not too emotionally involved in your life and can meet with you at least once a month to make sure you stick with your plan.

#4: Over-complicating Your Plan

Good personal finance planning is never overly complicated, but is simple, easy to stick with and make a part of your life. Some of the common ways that people overly complicate their personal finance planning is with excessive personal expense categories, overly sophisticated investment strategies and complicated plans for leveraging debt in order to build wealth.

Keep your written personal finance planning simple. Remember that exceptions are the most dangerous thing you face when it comes to sticking with your commitment and trusting yourself to be accountable to someone else. These simple tips will greatly increase your chances of succeeding with your personal finance planning.