#72: Re-Release: How to Hold Yourself Accountable
Episode Summary
We're revisiting an all-time classic from the Tough Love vault this week, with a breakdown from Allegra on the importance of accountability and community when it comes to growing wealth. This episode originally aired in May, and highlights why ongoing accountability with a like-minded community is STATISTICALLY PROVEN to increase your chances of achieving your goals...by a lot.
Episode Notes
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Welcome back to another episode of Coffee and coin is just me today, filling you in on the recent wall circle graduation after our final session last week, that was all about accountability systems. First, I want to start by saying that this was our biggest wealth circle yet, it was our 25th wall circle, with 240 women taking charge of their financial life, learning about the three asset classes they can use to build wealth with, and becoming confident financial decision makers. So in just 12 weeks, I watched these women transform their financial lives, and graduate feeling ecstatic about their financial futures, which is a really big deal when not all of them came in having a good relationship with money, or understanding their current financial situation, or having clear goals about what they wanted to do going forward. So before we dive in, here's a reminder of how the wall circle looks. Basically, over that 12 week period, there are six online live sessions where all the women sign on and meet up for two hours, these women are joining from all across the country and actually the world because this was our first class to have international women join. That night, they learn a financial topic that they can apply. Right away, we spend an hour covering the financial information, and then another hour, breaking out into small little accountability groups to discuss that information in real time in these breakout groups. Women don't just discuss what we're learning about, they discuss themselves and their own financial life. So they're sharing their real numbers, like their salaries, their net worth their total debts, savings investments and digging into their financial mindset, including any limiting beliefs, and of course, working through figuring out their financial goals and plans going forward. So then between those live sessions that are every other week, there are two assignments that they do. Typically, one will include a spreadsheet and either an expert video on a certain subject matter or journaling prompts to kind of help them figure out what they want to do with that information. And then they meet up with their accountability partners. Now, today's episode is all about accountability. So I really want to focus on this because it's so different than any other program out there. We assign women, a different accountability partner between each live session, so that they can meet up one on one and discuss in depth, what they're learning how their assignments went, and how it's changing and their financial life, they get so vulnerable in these meetups, and they say that it's one of the best parts of the wall circle. And I get why. I mean, a lot of us don't share our financial knowledge or fears, or really just express where we are with our personal numbers to anyone in our life. Maybe parents may be a partner. But even then, I know plenty of women who come into this wall circle who've never shared their net worth numbers with a single soul. So okay, that is the flow of how the wall circle goes down. And here is what women walk away knowing first and foremost, they learn how to create their investment Foundation, which has to be built upon strong fundamentals, like eliminating high interest debt, especially consumer credit card debt, because that steals from your ability to grow wealth, and how to manage any other debt by creating a plan for anything like student loans, car loans, mortgages, etc. Then it's all about having a solid emergency fund that is based on not just your fixed living expenses, but your personal situation, like how easy it would be to replace your job if it wasn't available to you anymore. And we saw a lot of people lose jobs during the pandemic that had nothing to do with their skill and then also your risk profile. So online and the internet ether people say things like just have three to six months of fixed expenses, but fixed expenses are going to be one factor, not all of them. Do you have dependents Do you have other liabilities that you might need additional money for? Do you have the right insurances, etc. So they get this number and After identifying that personal emergency fund number
It's time to get fully funded and into a high yield savings account. There's no reason this money should be sending in checking accounts, or just dismal savings accounts that are giving you no return, we want to add a high yield savings account ready so that when something bad happens in life, when life throws you lemons, as it tends to do, you are good, you feel solid and secure, because you already have that liquid cash available for whatever it is that comes up. And then finally, having clear savings systems set up for your near term goals, which is anything that you plan on happening within the next three years, because you don't want that money tied up in investments, because it can be more risky when you need it back in the near term. And investments should be looked at with a long term focus. After we've got those tears of our financial foundation covered, we begin working on wealth building, which really is investing. So that's what the remainder of the wall circle is dedicated to teaching women how to understand the three asset classes, paper, real estate, and business which people utilize to build wealth. So we really get into it, we teach women all about the stock market to alleviate a lot of fear and confusion there. I think a lot of times women come in thinking that the stock market is really the bulk of investing that they can do and they walk away thinking Oh, stock markets a breeze, I can kind of set it and forget it once I have my selections down and move on to the other asset classes. But regardless, if you have fear or confusion around the stock market as so many women do, we help you understand the fundamentals of how it works. So it is no longer scary. And it's obviously a very important part of our portfolios. And most women come into the wall circle with investment accounts already, whether it's a 401k, or an IRA, or maybe they have brokerage accounts that has either been set up for them or they've set up but they've kind of left alone. So we dig into all of that, then we spend another entire session on understanding the different investment selections that are available to you from ETFs index funds to individual stocks you name it, and why it is so important to have the proper asset allocation and diversification within your portfolio, then we move on to real estate truly a fan favorite among women. And I think it's because this asset class is tangible, right? Like we all live inside real estate. And so inherently it's easier to understand because it is a physical hard asset. Unlike the stock market, which we watch our portfolio being held in graphs and just numbers on a screen that go up and down. So we discussed the different ways you can build wealth through real estate investing, which is a true highlight because there are so many ways to get creative in real estate that I think a lot of us haven't imagined. And we talk about so many factor women who are already doing creative real estate ventures and how you can get access to partnerships. And so this is really a fun topic. And then finally, we move on to the third asset class business investing. And let me ask you this, who is the wealthiest person that you know in your life? And how did they become wealthy, likely they are an entrepreneur, or business owner, or their family were business owners that created legacy lasting wealth for subsequent generations. This is why you are constantly hearing about founders and investors in the news, when you look at the Forbes 400 list, which is showing you the world's wealthiest people, the majority of them are business creators. And that's because you have to understand that when you create a business with what's in your mind, there is no ceiling on it like you would have with a salary job. So obviously starting a business is not easy. Hell even thinking of a business idea is not that easy. But there's good news here to because in the business asset class, there's really two ways to go about investing in a business. There's the obvious one that we just talked about, that's becoming an entrepreneur and starting your own business or there's investing in someone else's business. So with the highest potential reward, obviously comes the highest risk. But this is another really exciting category for women to learn about. And we get into accredited investing and what that means to have access to investing in more deal flow and finding businesses that you can invest in early on. And finally, after learning about all the inherent characteristics of these three different asset classes and the opportunities available within each we tie up the wealth circle
with accountability systems, which is what I I wanted to talk to you about today. And I love this quote, at the end of the day, we are accountable to ourselves, our success is a result of what we do, I'm gonna read it again, at the end of the day, we are accountable to ourselves, our success is a result of what we do. So factoria exists to bring women, the financial education, investment resources, and community that they need to be successful. But the action part is always going to be up to the individual, which means the final results are up to you,
which also means
the amount of financial success that you can achieve and your lifetime is truly up to you. And I find it so powerful, knowing that we are in charge of our financial future. So let me ask you this, what percentage of people that set goals actually achieve them? The answer is 10%. That is a shockingly low number. And honestly, other studies say that it's even lower. So why is it so low? Well, air quotes, setting goals is pretty fluid. I can decide on something today, and then change my mind tomorrow. Or I can decide on something else tomorrow and forget what the heck it was the day after. Because when people have goals as an idea in their head, and don't write them out or build a plan of action to making them happen. They're really loosey goosey. And you can look at New Year's resolutions as proof right? You've all heard the New Year new me hype, and also watch it quickly dissipate. Why do you think the gym parking lot is always chock a block full in January, but empty by March. Because New Year's resolutions is a perfect example of this loosely setting goals that don't stick when there's no plan or accountability in place by simply writing down your goals. And including a plan of action of when and how you'd like to reach it, even if things are going to change. But just taking that physical step to write it out. It shoots your likelihood of success up to 50%. So now, if setting goals is only 10% likelihood of achieving it, and writing down your goal with a plan of action and deadline is 50% more likely to achieve it. Why wouldn't you do that? And yet so many people don't. But how do you think all the factorial women we feature on this podcast, we're able to achieve their goals? Because duh, they leave the wealth circle with a goal and a plan of action in place multiple goals at that. So better yet? Did you know that you can increase your probability of achieving your goals even more?
Yeah, how do
you do it, you could do it by telling a friend or two or three. Sharing your goals out loud with somebody else will automatically give you another 15% boost in your success rate. So now we're up to 65%. But here's the real magic, you can actually take your success rate, all the way up to 95% if you pick a specific accountability partner, and schedule regular meetups with them, so it is no accident that we utilize accountability partners throughout the wall circle like I explained in the beginning of this episode, we help women put into practice the key factor that gets them so very close to 100% success rate. And it's why we can share so many financial wins with our community because our community is making their goals a reality. This is the true power of the wealth circle. Yes, you're going to learn about financial fundamentals that we weren't taught in school. Yes, you're going to learn about investment principles and these asset classes I mentioned and how to get started with each. But you're really going to learn how to formulate solid financial goals and put a plan of action in place. And then finally, to make these goals the closest to becoming achievable as possible. You're going to add the principle of accountability both to yourself, and to an accountability partner to make what you desire in life, your own reality. So here's where the tough love part comes in. Education on its own is simply not enough. There's a quote by Tony Robbins that I love. And it goes like this. Knowledge is not power, knowledge is only potential power. action is power. And I think that this is so true, right? You can read and listen and learn all you want to about personal finance. But that's not where the real change happens. The real change happens when you act with accountability. And not just once, but over and over again, small, repeatable actions that lead to some big, real wealth. And I've lived through this, y'all, this is why factorial exists. Because when I was approaching 30, and recognize that I didn't have a lot of money to my name for the amount of money that I was earning, I was making great income, but I had basically nothing in savings, zero investments. And I just thought, How the hell am I going to achieve what I want to having a family having my home, hopefully having a business in the future, without any capital to provide those things. And so when I went on my financial revolution, and read everything, I mean, I consumed every personal financial podcast book, I mean, I went in, it was really exciting to figure out what I should be doing with my money. And yet I was frozen for another year, because I didn't want to make mistakes with the little money that I had. So I didn't take action. And that is the biggest difference here. It's why I created factoria. I mean, why do you think that the average factor woman increases her net worth by $34,000 in six months, because we have built accountability into the core of the wall circle. We pair you with accountability partners every other week to talk about your learnings, share your goals, get vulnerable, be inspired and meet incredible women that you would not have met otherwise, who are all trying to have successful financial lives. Afterwards, when the walls are Glen's, you get folded into our larger, incredible factorio community where we are building the best women's investor network there is I mean, look around, if you don't talk about investing with your core female friend group, I get it. I didn't either. That's why we built this community. At factoria. It is so normal to share money wins, big or small. To ask questions on any financial topic you need help addressing and to share your real numbers. Whether it's a home refinance, or a stock market rebalancing, or net worth increase, these women are sharing their financial numbers, because now that they've done it, it's a muscle that they've started to flex and it feels good and empowering to be like, this is what I'm doing. And this is the breakdown of the numbers behind it.
Because those learnings can inspire other women, it is the community and the accountability factors that are the forcing mechanisms to ensure that you show up and take action in your financial life. And it's honestly not something I believe can be created on your own. So yes, absolutely. Listen to this podcast, listen to other podcasts, read books, you know, take courses get financially educated, but it is the financially inspiring community that will push you along and help you reach higher and higher levels of success. So if this sounds up your alley, obviously don't forget to apply to the 26th wealth circle. I really can't believe that it's our 26th one that gets started this fall in September. And we'll include the link in the show notes so you can apply for that and get ready to see how your life changes and how your community shifts. When you allow all these inspiring women into your life.