Setting Financial Goals for You and Your Family Members

Like any company, you and your family members need to develop your overall financial goals. This process is definitely a family affair. (No family or significant others involved with your financial affairs? In that case, you’re on your own.)

The objectives of other people involved with your financial life, however, may not always be the same as yours. Dealing with others can prove one of the most difficult tasks when it comes to managing your money. Do you have a spouse who likes to buy all the latest fashions? Did you have to pull out the credit card to get Junior his Xbox 360 last holiday season? If so, these situations can become major obstacles in your effort to improve the bottom line of your financial life.

That’s why we’d like you, at this stage, to round up all family members or parties directly involved with your financial life for a board of directors meeting. Set a time and place that’s convenient for all to get together. Prepare a written agenda, and bring all your hard information to the meeting, including the worksheets you developed calculating your net worth, income, and expenses. These will be the focus of your meeting.

First, examine your net worth worksheet. Is it negative? In that case, your goal might be to set it on a positive track. If you have savings, but need $10,000 for Junior’s college education, say so. Obtain a commitment of support from the members of your team. We’ll talk more about fine-tuning your goals later, “Identifying Your Financial Goals.” The ball for setting financial goals for you and your family members your financial goals strictly lies in your court.