Family financial goals are as important as personal financial goals. It is obvious to set goals on your own if you are single. But if you have a significant other or kids, it is easier to set goals and get on board.
Though there is no specific formula for setting financial goals but there are some tips to make it a bit more effective for you. First, let’s see a few common long-term financial goals of a family.
Common long-term financial goals for the family
- Purchasing a home
- Renovation of the home
- Purchasing the second car
- Starting a new business
- Kids’ higher education
- Creating an emergency fund
- International vacation
- Retirement
Tips to set long-term financial goals for the family
Below we have listed 6 actionable tips about how to set long term financial goals for the family:
1. Set measurable goals
The foremost necessity in setting financial goals is to set measurable goals. And, it is even better to set a time frame in which you want to achieve them. Being specific with the date of achieving the target will definitely keep you motivated. For an instance, you can maintain a worksheet with specific goals along with their respective target dates.
2. Involve family in the planning
Explaining the family members, including the children, is an effective way in setting a financial goal for the future. You should ask for their ideas and consider their desires. Even if your kid gives a silly idea, try to dig out their inner desire to make them happy too. And, involving children in financial matters is an excellent way to teach them about finances.
3. Set rewards system
Sacrificing for a goal can be hard but frequent rewards for the same will keep your family getting closer to your goal. If you have children, it is still easy. You can keep them motivated and dedicated towards the goal by bringing them toys, games, favourite chocolates, etc occasionally.
4. Pay off debt
As the popular saying goes, “It’s not your salary that makes you rich, it’s your spending habits”. Long term goals might not be effective if you don’t keep your debts in check. If you have outstanding debt, getting rid of it quickly must be your first short-term goal. It will free up the funds to be contributed towards your goal.
5. Let your money earn money
A quote by Warren Buffet says, “If you don’t find a way to make money while you sleep, you will work until you die.” It simply means that apart from your regular job or business, you must have another source of income working for you at all times. While setting a long-term financial goal, make sure to invest your money in a way that generates wealth along with beating inflation.
6. Track your goals
Reviewing is one of the most important steps in financial goal setting. Don’t forget to track and review your goals after every month or two. In fact, there are a few mobile apps that allow to link your bank accounts together. This facilitates having all your expenses, savings and investments in one place, hence making your tracking easier.
