The power of accountability

I love to figure out how people achieve greatness. Just today, I gained a new insight into the mechanisms of superior achievement. In a word: Accountability.

Think about it: when there's nobody to call you on your lazy habits, and nobody to make you feel ashamed if you don't perform up to your standard, you don't perform as well (or at all). The Unknown Professor at Financial Rounds got me started thinking about this with a post about the power of accountability in writing. His advice:

1. Make it a daily habit, whatever it is. Don't let it pile up, thinking that you'll do it all at once, "later on".
2. Keep a consistent, daily record, and share your record weekly with somebody else.

Psychology has discovered that record keeping is a strong tool for directing focus. Accountability seems to magnify the effect by a significant factor (see Unknown Professor's post for details of the studies involved).

So, how does this adapt to personal finance? Keep a record of your finances. Make a budget, by yourself or with your spouse, and record income and expenditures every day. Track your progress, and at least once a week, share your progress with somebody else. I have seen a great deal of improvement in my finances when I am active about managing them, and discuss them frequently with my wife. You might see similar results.