Bringing the Family Closer

Steps to Creating Family Financial Goals

When the whole family is working toward common goals is a bonding experience. This brings the family closer and you begin to find yourself operating as one unit to achieve those goals instead of pieces of a unit. Professional teams, business organizations, and fraternities have common goals that brings the people involved closer, so why shouldn't families?

Setting family goals brings families together. Although goals for all areas (health, personal growth, religious/spirituality, etc.) should be set with the family, this article will focus on family financial goals. In addition, each individual unit of the family should have their own personal goals that they are looking to achieve with the support of the family.

By working as a family for financial freedom and setting family financial goals, everyone involved gets a sense of purpose and something positive to work toward. Parents, children and extended members of the family will all benefit from the support of working toward family goals.

Setting family financial goals begins with identifying areas that your family wants to work on. The first step is to figure out what motivates everyone. Maybe one family member wants a vacation home in the mountains, someone else wants to retire in a few years and another member wants to have enough money to take a month off each year to spend on family vacations. Whatever it is that your family member's wants; get it out. This will help you understand each others dreams and you'll become closer because of it.

Now that you know what each family member wants it time to align your goals. Perhaps you need help with making investments, want to put more away in the 401k, would like that new car, or just want to have more money for a rainy day. The bottom line is that everyone in the family has to do their part. When everyone works together with a common goal of achieving financial freedom then everyone's life improves. The ability to set family financial goals and achieve family goals will improve every aspect of you personally and your family as a whole.

Family Financial Goals That Work

To maximize the effectiveness of your family goals set them using the S.M.A.R.T method.

• S - Specific & Significant. Make your family goals as detailed as possible. This give the entire family a clear direction on where you are heading and the closer they become to reality.

Make sure your goals are significant to each family member. They must mean something to your family so they are motivated to attain them.

• M - Measurable & Motivational. Family goals are more effective when they are measurable. This also gives you an opportunity to celebrate together once you achieve them.

Design family goals that motivate each member to attain them.

o        A - Attainable. Dream big and be realistic. You can be a multi-billionaire but having super stretch arms that make you famous probably won't happen.

• R - Reasons, Results & Related. Its important to phrase your goals in the positive by using words like results-oriented words like "I accomplished," "I received," or "I have." These phrases direct your mind to focus on the outcome and that's one of the key steps to becoming financially free. Your family financial goals should include the reasons too - would you like money for college, a nice vacation, etc. In addition any family financial goals must relate to each other so the family works as a single unit.

o        T -Time. Your family financial goals should have a time limit. You'll find it will move everyone to accomplish them by a certain date.

Family financial goals should be heading in the same direction, not contradicting each other. For instance, having two goals of vacationing in Spain next week and increasing work hours to save more money may contradict each other. Create a dynamic family that accomplishes goals together. Each goal you successful accomplish together brings everyone closer.

Vince Shorb author of 'Money Grows on Trees' and 'Financially Free by 30' strives to strengthen the family unit by giving financial lessons the family can benefit from. To get free video lessons visit www.FreeBy30.com.