Disconnecting The Money Dots: How to Keep Your Money Honest

During the 2009 American Music Awards, Jay Z won Favorite Rap/Hip Hop Male Artist for his song “Empire State of Mind” with Alicia Keys. During the end of his now infamous acceptance speech, he uttered six simple but powerful words. “Men lie. Women lie. Numbers don’t.” When it comes to properly managing your finances, you should ALWAYS keep these six words in mind. I can’t tell you how many times I’ve sat with someone who starts painting a picture with their words that the numbers can’t confirm. And guess who I will believe? You guessed it…the numbers! With that said, I want to give you a few tips on how to keep yourself and your money honest, provide you with some tools to stay financially empowered and become the best you yet!

1. Create a Budget You Can Stick To

A budget is the best tool you can use to guarantee your financial success. It serves as your roadmap to navigate you towards your desired goal in a timely manner. But if you don’t follow it, what’s the point? Contrary to popular belief, a budget doesn’t limit the amount of money you can spend but provides direction based on what you tell it to do. Instead of creating a budget that looks good on paper (or your mobile device), focus on one that you will realistically follow. If you know you will spend a certain amount on dining out, let your budget reflect that. It’s better to be self-aware than to lie to yourself, because eventually you will begin to believe the lie.

2. Create Affirmations

Affirmations are a great way to achieve any goal. They keep your mind’s eye focused on what is most important and transport those ideas to your subconscious. Put them in your smartphone as an alarm in the morning so that as you begin your day, you are reminded what your goals are. For example, if you have a financial goal of saving $5,000 this year to invest, your affirmation could be, “I am so happy that I have saved $5,000. I will use and spend this money wisely to grow my net worth.” This will help remove any temptation to drift your spending in a different direction.

3. Limit Your Access

Many people falter on their budgets because they have too much access to their money. Separate your money into a bill account, a savings account, and a spending account. Set up your expenses to be paid through your bill account. Automatically deposit any funds into your savings account. Any money you have left over should go into your spending account. Using this method removes any temptation you may have to use money for other purposes. This will keep your budget intact and allow your money to be honest!

4. Track Your Spending

People who are not honest with their money never know the cause of the “money leak” sinking their financial boat. Usually, small, unplanned expenses do the most damage. When you consistently track your spending, you are creating a mechanism that holds you and every dollar accountable. As you spend and subsequently track your spending, it’s easier to pinpoint and stop unnecessary spending.

5. Find an Accountability Partner

Lastly, you can’t lie if there is someone there to call you on it. Sometimes, holding yourself accountable requires some reinforcement. An accountability partner is a powerful tool to effectively manage your money. Creating a system that allows you to have periodic check-ins on your budget can go a long way. Whether it’s a friend, a significant other, a financial coach, or co-worker, align yourself with someone who can help you reach your goal.

And speaking of accountability partners…we want to fill that role for you if you allow us. Head over to the Best You Yet page to take our pledge if you haven’t already!

The views and opinions expressed by the author are not necessarily those of BankMobile. The blogs are intended as general financial knowledge that may or may not be applicable to your individual needs. Always contact your accountant for tax advice.

All company/product/service mentions in this post are not intended as an endorsement and the views of that company do not represent the views of BankMobile or Customers Bank.