Accountability Counts

It is easy to feel as if staying on top of our finances is completely out of control right now.

Inflation is still above target, gas prices are climbing, and the cost of everything, including groceries, is up.

Even once inflation has stabilized, and let's say balanced out to the two percent mark, we are still paying more than we did last year. Prices may even out but aren't likely to drop.

Interest rates have climbed and while it feels like they are unreasonably high, the fact is the average mortgage rate in Canada over the last 30 years is over 7 %.

Interest rates, inflation both out of our control.

Housing prices are still climbing.

It is easy to allow the overwhelm and worry to get in the way of making the necessary financial adjustments to weather this storm.

It is also easy to abdicate responsibility for the financial decisions we need to make because we aren't responsible for interest rates or inflation.

It's true, we aren't responsible for the forces that govern inflation and the interest rates hikes often employed to try to combat it.

And it doesn't matter.

Because while we aren't responsible for the outcomes, we are responsible for our own financial choices.

We are responsible and we are accountable.

And you want Accountability to be your friend

Accountability will allow you to become free and experience financial ease.

Financial ease doesn't mean unlimited financial resources.

It means living responsibly, within your means, finding balance between spending now and spending later, understanding the impact of your financial choices and habits and building a framework of resilience into your financial life.

Being accountable for what is going on with the money in your life takes the power away from money and puts you back in control.

We give characteristics to money that it simply does not have.

We personify it with feelings, and we make stories up about money.

Money is evil, rich people are greedy, money is emotional. Money is power.

All not true.

Money does provide access.

Money provides choice.

Developing your friendship with accountability will transform your money relationships.

Here are some tips to get you started:

1. Awareness I've written before about awareness. Get real with your numbers. Know what income is coming into your home and what is going out. Don't forget the unusual or annual expenses that creep up unexpectedly.
2. Set clear expectations: Establish your financial goals. Start small if you must. For instance, if your goal is to get a raise at work, find out what the requirements are, what training or certifications you needs, what skills you should develop. If you are saving for a holiday, make a budget and a timeline, open a separate bank account, and start saving the money monthly. Be realistic about what you are trying to achieve.
3. Take ownership: This can feel like a hard one. Acknowledging your situation and making changes will allow you to move forward, building your confidence. You may have experienced some consequences as a result of your actions or decisions. Take a moment to acknowledge them. Always remember your current situation with money is just that, a situation. Not a life sentence.
4. Seek advice: Actively seek advice and knowledge by reading books and blogs, listening to appropriate podcasts, and speaking with qualified financial professionals. Surround your self with people you trust who can provide some valuable input. Absorb the information and then make your decisions.
5. Learn from mistakes: Mistakes will be made and probably have been. Look at them as an opportunity to grow and learn. Notice the triggers or reasons you made the financial decision you did, and set up processes and strategies to avoid the same mistakes. For instance, avoid going shopping when feeling stressed or depressed or deprived.
6. Be proactive: If you know you have an annual insurance bill that comes due every new year, divide the amount due by 12 and start putting that money aside monthly. Use the same strategy with all the annual bills that come in. Planning ahead means fewer surprises.
7. Communicate openly: Practice letting people know you are getting organized when it comes to your money. If that destination wedding invite doesn't fit your budget, thank them for thinking of you and send a present instead. Money is still a taboo topic for many, help others take taboo off the table and have open conversations. Share your successes and your challenges.
8. Evaluate your progress: Regularly review your finances, at least once a month to make sure you are staying on track with your savings, investment and debt repayment goals. If you have a month where you miss your goals, acknowledge it and reset. Don't allow yourself to wallow.
9. Celebrate successes: Set up mini rewards for yourself, and then take the time to savour the attainment of the goal, no matter how small. Short term rewards will help you stay on track. They also allow you to feel in control and more free when it comes to making financial decisions.

While there may be times, possibly while you are still under your covers, where you would like someone or something to save you, tell you what to do, win a lottery, suddenly become an influencer, invent something amazing and get it to market on time and within your means, for most of us, it's not likely to happen.

Take a step towards accountability. Many small steps = impact.

In a month, 6 months, a year you will be in a different place.

A place of your choosing.

You can change your relationship with money.

With Gratitude,

Maura

Here's to open conversation about money and making money work for people!

Want to learn how to manage your cash flow without restrictive budgeting?

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