Comments on: A more effective way to manage your personal finances (lead vs. lag indicators) http://www.gettingfinancesdone.com/blog/archives/2009/08/a-more-effective-way-to-manage-your-personal-finances-lead-vs-lag-indicators/ Your Guide to Stress-Free Financial Control. Personal finance tips. Thu, 19 Jan 2012 01:14:24 -0700 http://wordpress.org/?v=2.8.4 hourly 1 By: Bob K http://www.gettingfinancesdone.com/blog/archives/2009/08/a-more-effective-way-to-manage-your-personal-finances-lead-vs-lag-indicators/comment-page-1/#comment-162201 Bob K Sun, 13 Sep 2009 21:24:16 +0000 http://www.gettingfinancesdone.com/blog/?p=27#comment-162201 Very good post about a critical topic rarely covered. Leading and lagging indicators have been a part of corporate performance management for years, but they apply equally well to personal finance. The trick, in my experience, is that leading indicators are closely tied to *behavior*, and behavior is difficult to change! Here are the measurements I use; leading indicators are closer to the bottom of the figure, lagging closer to the top. It's in the form of a strategy map, with which you MBA types are likely familiar. http://i652.photobucket.com/albums/uu243/pdxrlk/persoal_finance_map-1.jpg Very good post about a critical topic rarely covered. Leading and lagging indicators have been a part of corporate performance management for years, but they apply equally well to personal finance.

The trick, in my experience, is that leading indicators are closely tied to *behavior*, and behavior is difficult to change!

Here are the measurements I use; leading indicators are closer to the bottom of the figure, lagging closer to the top. It’s in the form of a strategy map, with which you MBA types are likely familiar.

http://i652.photobucket.com/albums/uu243/pdxrlk/persoal_finance_map-1.jpg

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