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Pick Your Five: Accountability And Decision-Making
Episode 263

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Posted by Choose FI

Episode Guide

Episode Summary:

Accountability and intentional decision-making can significantly impact personal finance and health. Jonathan shares his own success with weight loss, attributing it to a combination of intentionality and accountability through regular check-ins with friends. By focusing on 1% improvements and being mindful of triggers that derail progress, both in health and finances, listeners can foster a mindset that leads to long-term success. The discussion connects to the work of Annie Duke, emphasizing the importance of upgrading decision quality and creating positive environments through the right social circles. Community wins and stories highlight the transformative power of small, consistent actions in achieving financial independence.

Episode Timestamps

ChooseFI Podcast Show Notes

Episode Title: Accountability and Decision-Making
Hosts: Jonathan Mendonsa, Brad Barrett
Episode Summary: Accountability and intentional decision-making profoundly affect personal finance and health. Jonathan shares his weight loss journey, achieved through accountability and 1% improvements. The discussion connects to Annie Duke's work on decision quality, emphasizing community support and small, consistent actions for financial independence.

Key Topics Discussed:

  • Podcast Intro

  • Jonathan's Weight Loss Journey

    • Jonathan discusses his experience losing over 25 pounds during COVID by implementing intentional living and accountability.

  • Accountability with JD and Dad

    • Regular check-ins with accountability partners led to significant weight loss for Jonathan and his father alongside JD Roth.

  • The Role of Community

    • Emphasizing the importance of surrounding oneself with supportive individuals to foster healthy habits and mindsets.

  • Transition to Annie Duke's Insights

    • Brad introduces Annie Duke's ideas on decision-making quality and the importance of focusing on the process rather than just outcomes.

  • Community Wins

    • Recognition of listeners’ achievements and testimonials showing the transformational impact of taking small, actionable steps.

Actionable Takeaways:

  • Strive to improve by just 1% every day to compound results over time.
  • Establish accountability systems with friends or family to track progress.
  • Identify triggers that lead to poor decisions and strategize to avoid them.

Notable Quotes:

  • "Strive to be 1% more intentional every day."
  • "Success is the sum of countless small decisions."
  • "Achieve freedom through disciplined choices."

Discussion Questions:

  • What are the characteristics of the five people you spend the most time with? How do they influence your decisions?
  • What strategies can you implement to create a better support system for your financial goals?

Action Items:

  • List the five people who have the most influence on your life and evaluate their impact.
  • Ask someone an unbiased opinion about a decision you're facing this week.
  • Jody's Journey: From student loan debt to achieving over $100,000 in investments through steady commitment and the support of the ChooseFI community.
  • Evan's Perspective: Exemplifying gratitude and thoughtful understanding of finances post-surgery.

Podcast Extro:
"You've been listening to ChooseFI Podcast, where we help middle-class America build wealth one life hack at a time."

The Power of Accountability and Intentional Living in Achieving Financial Independence

In the pursuit of financial independence, the commitment to intentional decision-making and accountability is crucial. It can be the difference between merely dreaming about your goals and actively achieving them. This article outlines actionable strategies derived from personal experiences shared by podcast hosts Jonathan Mendonsa and Brad Barrett, emphasizing the importance of cultivating a mindset focused on small, consistent improvements.

Embrace the 1% Improvement Mindset

Striving to improve by just 1% every day can snowball into significant changes over time. This philosophy, rooted in the idea that small, incremental adjustments lead to remarkable results, promotes a growth mindset essential for long-term success.

  • Action Item: Identify one area in your life—be it health or finance—where you can apply the 1% improvement principle. Track your progress weekly to witness gradual change.

Establish Accountability Systems

Accountability can significantly enhance commitment to personal financial goals. Jonathan’s weight loss journey illustrates how weekly check-ins with accountability partners can lead to sustained success. These discussions serve not only as motivators but also as opportunities for constructive feedback.

  • Action Item: Choose an accountability partner or form a group with friends or family members where you can set goals and share progress regularly. Aim for at least a weekly check-in.

Identify and Manage Triggers

Recognizing the triggers that lead to poor decision-making is integral to any personal growth journey. These triggers can be emotional, situational, or social. The conscious practice of avoiding these triggers will allow you to make better, more intentional choices.

  • Action Item: Reflect on situations where you have made financial decisions you're not proud of. Identify common triggers and strategize ways to mitigate or avoid these situations in the future.

Upgrade Your Decision-Making Framework

Effective decision-making is at the heart of financial independence. Experts like Annie Duke stress the importance of upgrading the quality of your decisions, which directly influences your life outcomes.

  • Action Item: When faced with a decision, evaluate it not just based on potential outcomes but also on the quality of the information and reasoning behind it. This might involve collecting diverse opinions or doing thorough research instead of making assumptions.

Build a Positive Social Circle

The people you surround yourself with play a crucial role in shaping your mindset and influencing your decisions. Being part of a supportive community can enhance your motivation and provide shared learning experiences.

  • Action Item: Take inventory of the five people you spend the most time with. Assess their influence on your goals and consider how you might upgrade those relationships to include more positive, growth-oriented individuals.

Focus on Long-Term Thinking

Adopt a long-term perspective when making financial decisions. This approach fosters a deeper understanding of the consequences of your choices, moving you away from short-term satisfaction toward lasting fulfillment.

  • Action Item: Set long-term financial goals and break them down into manageable steps you can tackle each day or week. This structured plan will help keep you on track without getting overwhelmed.

Utilize Community Support

Being part of a community offering shared experiences and resources can provide motivation and accountability. Success stories, like that of someone paying off debt or achieving savings goals, can serve as powerful motivators.

  • Action Item: Engage in community forums, such as the ChooseFI Facebook group, where members share their wins and experiences. Participating in these discussions can inspire you to take action toward your financial independence.

Implement Small Changes for Big Results

Mastering your finances doesn’t require drastic changes overnight. Instead, focus on incorporating small adjustments into your daily life. Whether it’s budgeting diligently, cutting unnecessary expenses, or taking advantage of travel rewards, every little effort builds toward a cumulative positive outcome.

  • Action Item: List three small changes you can implement this week that will positively impact your financial situation. Commit to these changes and monitor your progress.

Develop a Thoughtful Approach to Spending

It is vital to view money as a tool that can enhance your life. Adopting a thoughtful approach to spending helps ensure that your expenditures align with your values and long-term goals.

  • Action Item: Before making any significant purchase, ask yourself how it aligns with your path to financial independence. Consider waiting 24 hours before finalizing the purchase to avoid impulse spending.

Conclusion

Achieving financial independence is a journey that requires intentionality, accountability, and community support. By focusing on small, daily improvements, establishing accountability systems, and cultivating a positive mindset, you can create a sustainable path to your financial goals. Embrace these strategies today, and take the first steps toward transforming your financial future.

In the words of Jonathan Mendonsa, "Change requires action; take the first step." The journey to financial independence starts with you.

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What You'll Get Out Of Today's Show

  • Jonathan draws a parallel between the episode on Monday with professional poker player Annie Duke and hitting his weight loss goals. Finding himself well over his desired weight, Jonathan took a health challenge and has kept the weight off for six months making him a weightloss statistical abnormality.
  • Where most people diet and get to a goal weight, because the effort was a diet, they end up regaining the weight. What Jonathan did was make a lifestyle change.
  • Tying to the discussion with Annie Duke, Jonathan recognized that he couldn't control everything, made better decisions, and set himself up for more opportunities. All of it helped to increase the opportunity for luck to strike.
  • Jonathan isn't alone in his endeavor. Through weekly accountability phone calls with his father and FI community member, JD Roth, they check in to ask if each has followed through with their goals for the week
  • Their goals aren't all that strict but they are trying to be 1% more intentional with their decisions and look at their decision-making framework, watching for triggers, giving into them less often, and coming up with solutions to not be tempted.
  • Brad notes the discipline equals freedom and that the framework Jonathan has created for himself makes everything easier and no longer requires willpower.
  • The accountability and decision-making strategies Jonathan applied to his weightless journey can be used for virtually anything you want to achieve in life. Taking action and trying to be just 1% better what ChooseFI is all about. All of the small wins begin to add up, creating nothing but good, grows your gap, and continuous the virtuous circle.
  • When we upgrade the quality of our decisions, the impact of them begins to compound and increases our probability of success.
  • Brad discusses how 70-80% of the contestations he hears involve one of the three killers of happiness: sarcasm, complaining, and blaming. We can change our mindset and the locus of control to impact our future. He believes putting space between stimulus and control can have positive and compounding effects.
  • As often mentioned on the show, you are the average of the five people you spend the most time with. Those five have the greatest influence on your life and you don't want them to have those happiness killer characteristics. Be intentional with your five picks.
  • Choose people who give you a path forward and will hold you accountable to the things you said were important to you.
  • Brad and Jonathan discussed how the concept of resulting, pro and con lists, and infecting others with our opinions before asking for advice is not helpful when trying to make better decisions.
  • As mentioned during Monday's episode, making better decisions requires depth and an understanding of probability and magnitude.
  • A challenge for listeners is to write down the five people you spend the most time with and who have the most influence on you. Then write down that their characteristics are that make them a good fit for your top five. And finally, what are the ideal characteristics for people who would be influencing your decisions and where can you find them?
  • The second exercise is to approach someone and ask for their opinion on something without prejudicing it first. Don't lead with what it is that you really want to do. Ask your question in a way that gets you additional information you maybe hadn't considered yet.
  • The first win from the community comes from Jodie, a self-professed broke chick who found FI in 2016. Since then, she's doubled her salary, gotten out a debt, flipped a live-in property, paid off her card, got married, formed two business with her husband, quit her job, and hit $100,000 in investments. Congratulations on taking action and changing your life, Jodie!
  • In response to Brad's weekly email, Evan writes about not shooting for FI with reckless urgency, but a thoughtful understanding of the use of money and how it can improve his life after breaking his finger required surgery. FI isn't about deprivation, but buying the things you value.
  • While the world is slowly getting back to normal during the pandemic, John calls in sharing how his wife was able to pivot her events business, Escape Room Races. The pandemic killed her in-person events, but she was able to rebrand, and pivot to a virtual format which is bringing in tons of new virtual events and they just had their biggest month ever.
  • Speaking of live events, previous ChooseFI guest, Christine, from episode 137, sent in a letter saying that at least 50 ChooseFI listeners have come to Nashville and taken her tour. Last Fall, one guest from New Zealand Brough five friends from all over the world after hearing about Christine's tour, A Little Local Flavor, on ChooseFI. She also has converted her friends into ChooseFI listeners.
  • When you respond to Brad's weekly email and we read your win on the air, you will get one of the ChooseFI Publishing books.
  • The first winner is Ahmed who wrote in to say he recently graduated college and was due to move to a high cost of living city. Because they moved to working remotely, Ahmad is saving on rent by staying at home with his parents in a low-cost of living city and investing the savings.
  • The second winner is Tommy who received an email from his state's 529 program that he was receiving a $500 Maryland state contribution.

Resources Mentioned In Today's Conversation

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