Teaming Up for Success

It’s been nearly 2 months since you made your resolutions for 2016. How are you doing? Me? I decided I need to get more fit. I sat down the other day to really think about what I needed to do to stick with it. I tend to overdo it at the gym and either hurt myself or make myself too sore to keep it up. Then I remembered that a friend had asked if I go to the gym nearby. I took a look at the gym’s website and saw they were offering a special on personal training sessions. I found my answer. I talked with my friend and she is excited to have someone to join her for classes or workouts. I added personal training sessions so that I do things right and I have accountability for making those sessions. Plus, my friend and I can catch up while we cool down.

It is well documented that having a buddy or someone to hold you accountable is an important motivator when you are working towards a goal.

What about your financial goals? Will accountability help you there? Of course it will.

Saving for any financial goal is fraught with the same pitfalls as any other challenge.

• Aiming Too High: If we set a goal that is not reasonably attainable, we get frustrated at how slowly the needle is moving and we stop trying. Sure, it would be great to lose 20 pounds in a month but it is not realistic (or healthy). Likewise, most of us don’t have the income to save enough for a new home down payment in just a couple months. Working with a partner can help you set reasonable goals with achievable time frames. Reviewing cash flow to see what you can save each month and recommend appropriate tools to help those savings grow to meet your needs.
• Taking Extreme Measures: When we have unrealistic goals, we often take unwise steps to achieve them. The result is a pulled muscle from over exerting or perhaps dizzy spells because you cut too many calories from your diet. With finance, get rich quick schemes are tempting but they are usually helping someone else get rich, not you. Having an objective partner to review your potential investments or savings plans can save you from losing your nest egg to unwise investments. Different investment vehicles will be appropriate for different goals.
• Having a short timeline: This is related to setting goals that are realistic. When you aim to lose 10 pounds, do you stop dieting when you reach the target? The real goal is to develop healthy habits. When you have shed the unwanted weight you still need to keep up your exercise routine so you don’t gain the weight back, right? The same is true with saving. Just because you saved enough to buy the new car you wanted doesn’t mean you should stop saving. There is always something else that you will want. As you work towards your financial goals, you should be building new budgeting and savings tactics. Having a partner to work with you can help you create better habits.

Having someone to help you define your goals, outline ways to reach them, motivate you to keep going and hold you accountable to working towards them will greatly improve your chances of success.

Indie Financial Planning is just getting started but I am looking forward to helping you start building new financial habits.