Buzz
One of the most effective ways to get your finances in check is through automation. Setting up automatic transfers to retirement or investment accounts, along with savings, can help you save more. Automatic bill payments also help avoid late fees and improve credit scores.
But you can't go it alone. It's crucial to have someone to keep you on track.
This could be a friend who helps you resist impulse buys, or a partner with whom you share common financial goals.
The key here is to communicate your goals to others so they can help you achieve them. Here's an example of a couple who paid off tens of thousands in debt by involving friends in their journey, as featured on CNBC:
Once [David and Meg Cahill] committed to aggressively tackling their debt, “we sat down with our friends, shared our ambitious goals, and asked for their accountability,” Cahill recalls.
According to Cahill, it was the best decision they made during their debt repayment journey: “The support we received — the texts and phone calls offering encouragement — made a tough process that much more rewarding.”
Involving their friends early on also helped them avoid costly social activities. “They were incredibly understanding and supportive, recognizing that we had to skip things like going out for drinks or bowling on Friday nights,” Cahill shares.
Your accountability partner can be anyone — or even an app — but the key is that they’re someone you trust, whose feedback you can accept without taking it personally, and who shares your goals. For example, if you’re cutting back on spending, don’t pick the friend who’s always out partying. If you’re saving for a child, choose someone who’s been through it and can offer helpful advice during tough times.
After selecting your accountability buddy, set a routine for check-ins. This could be daily, weekly, or whenever the urge to splurge hits, as mentioned earlier. Make sure to add reminders to both of your phone calendars, and decide whether you’ll meet in person, chat on the phone, or email.
Even better, start early. Become your child’s accountability partner to help them learn about money and how it really works.
The holiday season or the approach of the New Year is an ideal time to take a closer look at where your money is going.
