Finance Stoic 22 – What gets measured gets managed

Above all, it is necessary for a person to have a true self-estimate, for we commonly think we can do more than we really can.

Seneca, on Tranquility of Minds, 5.2

Today’s question was do I see and assess myself accurately?

Interesting question today.

I think, on average, I assess myself quite accurately.

I have done 360 degree feedback exercises at work. When I get the results, I review them with my wife and we nod and say yes, that’s accurate. We aren’t surprised.

Does that mean the 360 degree feedback is all positives? No, not at all. It simply means I am as aware of my downsides as I am of my upsides. In fact, given I have a reasonably low self-regard score, I tend to always be focused on my negatives and how to improve them.

Where I tend to be insufficient in assessing myself is with regards to our annual spending versus what we budget, which is how I have unfortunately let lifestyle expansion increase our spending each year.

As a Chief Financial Officer with 18+ years of training, education and work experience with budgets, cash flows, financial statements, etc. I am a firm believer in the statement that what gets measured gets managed, yet I am not measuring my performance against plan on a sufficiently regular basis. How is that? It’s crazy!

Starting now, I will be preparing a monthly dashboard of performance against my annual goals, which I will divide into the following categories:

  1. Personal goals
    1. Travel
    2. Fitness
    3. Reading
    4. Meditation
  2. Professional goals
    1. Career
    2. Blogging
    3. Writing [novel]
    4. Networth
  3. Family
    1. Husband
    2. Father
    3. Sibling, son, friend

Effectively, by setting goals across this spectrum of categories and monitoring my performance against the dashboard I will be able to achieve my short, medium and long-term goals.

I anticipate completing my goal setting for each category within the next week and look forward to putting an action plan together to achieve these goals and then monitoring my performance.

Until next time,

FS

Finance Stoic

One thought on “Finance Stoic 22 – What gets measured gets managed

  1. I like your categorization of goals. No doubt it will make you more self-aware and lead to a balanced life. The tagline for my blog “Invest in Life” is meant to inspire self-reflection and balance.

    Like

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