Agreements VS Expectations

At my insurance agency, we have a policy we adhere to strictly. We refuse for our clients to have EXPECTATIONS of the level of service they are going to receive. Why? Because expectations are fuzzy. 

Imagine for a second that you need a tree cut down at your house. The tree is leaning towards your home and a storm is scheduled to roll in tomorrow afternoon. Because of my astounding track record with trees, you ask me if I’d do the honors and cut down the tree for you. I tell you, “I’d be happy to come over and will be there shortly to take care of the tree.” There are a lot of expectations in this statement. There is no specificity. Shortly is a generic term. It could mean an hour or it could mean two weeks. Taking care of your tree could mean that I just ratchet strap it to another tree, that I fall it to the ground, or that I cut it up and haul it away. There is no commitment from me or from you on the execution of this statement. You’re left wondering exactly when I’ll come and what I’ll do when I get there. My expectation and your expectation could be dramatically different and we won’t know until it’s too late. Because expectations are fuzzy, they cause anxiety in their lack of clarity. 

At our office and in my life, I do not live in expectations which are fuzzy and unclear. I live in agreements. An agreement is a rock solid expectation. There aren’t undefined parameters that could potentially provide an out. An agreement is clear and both parties are on the same page. For an agreement to be made, both you and the other person must agree to the specific details of said agreement. 

In our example of me cutting down a tree, here’s what an agreement would look like: “I’ll be over at 2pm and will cut down your tree and make sure that it is cleared out, not leaving a stick behind. It should take me about 2 hours to complete the project. Does that work for you?” This statement is specific. You know that I’ll be over at 2pm. You also know that I’ll not only fall your tree to the ground, but I’ll make sure that your yard is put back as I found it. You have extreme clarity on what is going to happen, when it will happen, and how long it will take. But we don’t have a complete agreement yet, because for it to be complete, both parties have to agree. And so, you respond, “Great! 2pm works for me and 2 hours is not a problem. Thanks for completely taking care of the tree being gone!” Just like that, an agreement has been made. How much more confident are you with this agreement than you would be with the first fuzzy expectation? There’s significantly more clarity, right? 

What does this have to do with your personal finances? EVERYTHING! If you are going to start taking your money seriously in your household, there needs to be clear agreements made between you, your spouse, and even your kids. If there are expectations that we are going to “start working on our money,” the likelihood of success is slim to none. 

You must be in agreement on what steps you are going to take to start getting your personal finances in order. Be specific on what you are going to do - where you’re going to save or where you’re going to increase your income - and make an agreement with your spouse that is clear. 

When you begin to live in agreements vs expectations, your chances of success will dramatically increase and your anxiety of what is coming will evaporate because you and your spouse are on the same page and headed in the same direction. 

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Zach Santmier is the owner of Trumble Agency, Inc. and the author of the personal financial course, Increase. He focuses on helping families escape paycheck to paycheck living so they can freely pursue their ideal future.