Accountability’s Strength
From my own experience, staying accountable can empower you. While monthly updates on my finances might not be extremely interesting to most of my readers at brokeGIRLrich, they’re a driving force for me to continue blogging.
This public accountability was my stepping stone towards getting my financial life in order. Sharing my journey online helps me stay consistent, doing this every month, and also encourages me to strive for better decisions throughout each month.
Having collected financial entries every month for the past 4 years, I’ve gathered valuable insights. I’ve experienced different circumstances and income levels since I began tracking my net worth and monthly expenses.
For two years, I had a steady job and paycheck, meanwhile, the rest of the time involved freelance and contract work. This routine of monitoring my net worth showed that my peak is usually in May, right before annual bills hit in June. I no longer stress over the net worth fluctuation in June and July; I now understand it’s part of the cycle.
There have been tough months where I fell short of my savings targets or unexpected expenses hit or even when the stock market took a dive. Nevertheless, my overall numbers are trending upwards, thanks to consistent personal finance practices.
There were challenging times in the beginning, while I was repaying debts and building up an emergency fund. I felt tight on cash, but these tough times didn’t last forever. Those sacrifices helped me reach my current financial stability.
What’s fascinating is that despite a modest income, my net worth has increased by $10,000 to $15,000 annually since I started tracking it. Before this, I never really knew where my money was going. It’s much more rewarding to witness my net worth rise monthly—far better than any shopping spree.
Take a look at the progress over the years:
In 2014, my net worth jumped by $11,114.99, from $35,482.52 in January to $46,597.51 in December, with an income of $50,589 before tax.
In 2015, despite making just half as much money ($25,429 before tax), my net worth remarkably increased by $10,447.05, starting January at $47,894.34 and ending December at $58,341.39.
In 2016, the visible impact of compound interest kicked in. With a pre-tax income of $36,052, my net worth swelled by a hefty $19,368.31—from $57,434.35 in January to $76,802.66 in December.
Through these years, had I not held myself accountable, who knows what would have happened? Flying by the seat of my pants would not have yielded these progress numbers, that’s for sure.
Even if you’re not up for blogging or proclaiming your net worth globally (unless you want to, by all means, go ahead), consider maintaining a personal journal or finding an accountability partner. These elements can significantly aid your personal finance journey.
Ideally, your accountability partner is someone who shares your priorities, and you’re comfortable being honest with. It’s fine if they don’t know your exact numbers, just connect with a friend who’s good with money and tell them your goal—say setting aside $5,000 for an emergency fund. Schedule regular check-ins to discuss challenges, victories, and mutually encourage each other.
Have you ever enlisted an accountability partner or had someone on your team for a goal?