Working toward goals by yourself is challenging. It takes a lot of self-motivation to get up and keep working every single day. Some days are good, others are hard. This is true for all goals in life, including financial goals. Getting to a better financial situation takes a long time and can sometimes be discouraging. To stay on track, it may help to have someone to walk with you on your financial journey, which is why you need a financial accountability Coach.
What is A Financial Accountability Coach?
Let's start with what a financial accountability Coach is and what they do. Think of a financial accountability Coach as a personal trainer for your money. You tell them your financial goals, and they help keep you on track to reach these goals.
Your financial accountability Coach will help track your progress and help you develop a plan for your money. They should have regular meetings with you to discuss your progress and provide guidance.
Picking The Right Financial Accountability Coach
Your financial accountability Coach can be anyone in your life, or if you prefer an outside view or opinion, it can also be a certified financial coach. Whoever you decide it should be someone who:
You trust their opinion on personal finance
You can communicate openly with them
You are comfortable showing them your financial situation
In most cases, financial accountability Coachs are spouses or significant others, family members, or close friends. Whomever you decide, it only needs to be someone you trust and can communicate with.
Your financial accountability Coach will help hold you accountable, but it is up to you to set your goals. Having clearly defined financial goals helps your Financial Accountability Coach to hold you responsible and motivate you to keep going. Coming into the first session with your financial accountability coach with clearly defined plans enables you to get started and track your progress.
Here are some tips to help you make better goals:
Find Your financial why. What is the real motivation?. Here are some ideas:
To retire wealthy?
To stress less about money?
To reach financial freedom?
There is no right or wrong answer. Just define why you want to improve your finances and remember that forever.
Another tip is to make Your goals specific: Make your goals as straightforward as possible. In terms of financial goals, this includes setting a particular time frame and dollar amount. Instead of saying, "I want to save money," say, "I will save $10,000 next year". That way, the goal is easy to track and has a cut-off date.
You should be tracking your progress throughout your financial journey and reporting it to your financial accountability Coach. Your Coach should review your progress with you and help you stay focused, and motivate you to keep going.
We recommend using a budgeting app like EveryDollar or Personal Capital, a spreadsheet app like Excel, or an old-fashioned pen and paper to track your progress. Regardless of how you decide to track your progress, make sure it is written and tangible.
In summary, your financial accountability coach needs to be someone that can hold you accountable on your journey to meet your financil goals.