When you make a commitment, there are few better ways to keep that commitment going than by requiring some serious accountability. You always hear this in relation to a diet. When you start on a diet, if you tell everyone you know, you’re far less likely to break your self-imposed rule system – at least not in front of anyone else! The same strategy can be applied to a variety of money management practices. First and foremost, we’d like to highlight budgeting.
We’ve posted before on the subject of how to develop a budget that’s right for you. Using a budget drastically reduces your risk for bankruptcy by organizing your expenses and determining each dollar’s purpose before it’s spent.
Sounds great! Unfortunately, many people who start off by making smart budgets end up abandoning them after a month or two because they aren’t held accountable. For families, you have a built in accountability system: a spouse. Chances are, one of the two of you is already a spendthrift, and the other a big spender.
For single people, finding an accountability partner to hold you to your budget is essential. Sharing your budget with someone (and having them reciprocate) can be highly effective. When someone else asks you how you spent your money and why, you’re less likely to go overboard in any category. And, you’re less likely to find yourself looking into the bankruptcy process!
Just make sure you stick to your accountability plan! Commitment is everything when it comes to success with this essential money management tip.