In creating a successful financial habit, there are many ups and downs. And the downtimes could be more than the ups before one figures their journey out.
From addressing the reasons that money motivates us to financial independence at whatever age, the journey is uneven. For this reason, you and I would need someone whom we are accountable to when it comes to our finances, especially towards building wealth.
In keeping the commitment to achieving our financial goals, one of the steps is having a financial buddy. A financial what? You may ask? Let’s break it down.
Do you or someone you know go to the gym? At the gym, one typically has a workout buddy or person that they work with towards their fitness goals. In the case of financial fitness, a money buddy is the equivalent of a workout buddy.
In finances, the money buddy arrangement can be one way where you are accountable to whomever you have chosen to walk with towards your financial fitness or where both of you can be accountable to each other as you work towards your own financial goals.
Since having a financial accountability partner is like having a gym companion who helps you stick to your nutrition and workout plan, you can set and share your financial objectives with your money buddy where each of you encourages each other towards making incremental progress towards your financial goals.
In case you are stuck up, a money buddy is not the person you call to bail you out of a financial fix. A money buddy is a mental and emotional coach for your financial well-being and not an emergency fund.
For the arrangement to work, you have to agree on establishing regular check-in times with your money buddy where you evaluate your progress towards your short and long-term financial goals.
There is nothing more disheartening than missing a target and how one deals with this setback determines if they recover or they remain down.
Setbacks are sometimes like speed bumps and if they are not addressed carefully, they have the potential to turn into failure in the long run.
Depending on your personality, how long does it take you to get back on track after a bad experience?
When you suffer a setback, there is the possibility of rationalising the situation and the decisions that led you there. There is also a possibility of returning to your previous ways of doing things.
When your financial objectives seem insurmountable or you keep falling due to short-term gratification, a money buddy can help you get through it. With a financial accountability partner, your financial difficulties are shared which lessens the burden you bear.
We have seen that a money buddy is not the one who will be bailing you out in case of a financial emergency.
A money buddy helps you stay on course towards your financial wellbeing and they are there for you when you experience setbacks and challenges in your progress. They also celebrate with you your milestones and achievements in the journey.
In having a financial accountability partner share your financial journey, you get a support system that will help you overcome hurdles and nudge you towards accomplishing your goals.
Naturally, trust and respect are earned and so there is a reason why you feel this way. This means that whomever you choose based on these qualities is someone you look up to, you listen to, and most probably could also act as a mentor. Choose your money buddy based on these qualities to ensure that they keep you on your toes.
In addition to trust and respect, someone who will be firm and keep a watchful eye on your progress toward financial stability is another characteristic you should look for.
Ideally, you need someone who will not be telling you what you want to hear but what you need to hear. This kind of person will give you the help you need and put you back on track if you try to deviate from your path.
To thrive in your finances, your money buddy should be one who creates an environment free of judgement. This means that you must carefully select your money buddy with whom you will feel comfortable discussing your financial situations.
A money buddy should be an enabler for you to allow you to become the best that you can be with your finances.
Your money buddy should be one you can easily check in with or call. This will ensure that you will not be kept waiting unnecessarily long to get going with your plans. It should be as easy as a phone call, a visit or just a sit down with them no matter how busy they are. People you are important to will create time for you.
You don't have to tell your money buddy everything about your finances. However, they should be aware of everything that has to do with your long-term financial goals.
For instance, depending on what you are working towards e.g. an emergency fund, then your money buddy need not know about anything that is not directly relevant to your financial goals.