Day: January 3, 2016

Budget Bootcamp Day 2 Family Mission Statement

budget bootcamp day 2 family mission statement
CRAFT YOUR MISSION STATEMENT

Welcome back! By now you should have crafted your clearly defined why and come up with a couple of affirmations to help keep you focused. Today we will craft your family financial mission statement. A mission statement will help you stay focused on your goals. We all get busy and life happens, so it may be easy to get off track.  Many of my client’s start out dedicated and ready to make the changes needed to improve their financial circumstances, a mission statement increases their chances to actually reach their goals.

A financial mission statement helps you to visualize your financial goals and remind you why you want to accomplish them. A family financial mission statement is that constant reminder staring you in your face each day, and you will be more apt to tackle those financial goals head on. This is a great strategy, so let’s get down to the business at hand and create that statement.

A good financial mission statement outlines your household’s mission, purpose and reason for being financially sound and secure. It will accurately explain what your household wants to achieve financially now and in the future and how you plan to get there. It will also incorporate your values, for example, if you want to thrive financially without sacrificing any benevolent contributions to your favorite charity, then you will want to include that in your mission statement.

Here is my three step guide to creating your family financial mission statement:

STEP 1. Determine what problems or opportunities that you need to address.

STEP 2. Focus on how you will address these problems and opportunities.

STEP 3. Determine your household values and determine how they will help you in achieving your financial goals.

Sounds easy, right? Well, if you have been reading my blog then you know there is more work to do than just answering these questions. You already know that I want you to be as specific as possible. So let’s revisit these steps in a more specific manner.

Step 1. Determine what problems or opportunities that you need to address.

In this step you need to include any problems and or opportunities that your family faces and how you will correct them. This part of the statement should be quick and to the point and stress the areas you need to focus on. Mine and my husbands problem was over spending and paying off my $50k in student loan debt. What I had to do was include some motivational key words to make us want to stop this behavior fast. Here is an example:

The financial mission statement for the Threadford household is to eliminate this atrocious, diabolical, ferocious student loan debt that is strangling us. We will not spend more than we make and we will eliminate frivolous spending. We will strive to not incur any other debts but rather to aggressively pay off this looming student loan debt.

Step 2. Determine how you will address the items in step 1.

Now that we have our areas of focus, we will state the path that we will take to get there. Again, my focus was paying off my student loan debt and eliminating frivolous spending, so here is how I explain how I will do that.

We we will aggressively pay off my student loan debt by earning extra income through part-time or contractual work as well as a strict budget. By setting a strict budget we will eliminate frivolous spending and by eliminating frivolous spending we will have even more money to tackle my student loan debt. We realize that frivolous spending is hindering us from being debt-free and it is time to stop that debilitating behavior.

That statement focused on how William and I planned on paying off my student loan debt and why we wanted to eliminate frivolous spending,  and it gave us steps to focus on to ensure that our goals were met.

Step 3. Incorporate the values of your household and list how they will hep you complete your goals.

In this final step you will insert your family values. If looming debt is keeping you from donating to your favorite charities as it was doing to us, this is the section where you will put what you will do with the extra money once the debt is paid off. Do you want to travel? My student loan debt was also keeping our family from taking vacations and from just enjoying simple thing’s, such as, going to the movies.

While paying off my student loan debt and increasing our income, the Threadford family will begin to donate 10% of our income to our favorite charity and we will being having family outings once a month and take a real vacation next summer.

Now that you have completed each step, you put them all together and make a motivational family financial mission statement. Here is the finished product of my family’s first financial mission statement:

The financial mission statement for the Threadford household is to eliminate this atrocious, diabolical, ferocious student loan debt that is strangling us. We will not spend more than we make and we will eliminate frivolous spending. We will strive to not incur any other debts but rather to aggressively pay off this looming student loan debt. We we will aggressively pay off my student loan debt by earning extra income through part-time or contractual work as well as a strict budget. By setting a strict budget we will eliminate frivolous spending and by eliminating frivolous spending we will have even more money to tackle my student loan debt. We realize that frivolous spending is hindering us from being debt-free and it is time to stop that debilitating behavior. While paying off my student loan debt and increasing our income, the Threadford family will begin to donate 10% of our income to our favorite charity and we will begin having family outings once a month and take a real vacation next summer. 

It’s also worth noting that in the worse case scenario, me and my husband have done our research on who would be responsible for our student loan debt if we were to divorce. Charles R. Ullman & Associates answered all of our questions like Is a student loan a marital debt? And if there were any debt forgiveness options available for us to take advantage of? To be closer to that holiday we’ve always wanted for our family.

Our mission statement was straight to the point and conveyed exactly what we wanted to do as a family. Now it is your turn. I have included a printable to help you compete your family financial mission statement. Once you have completed it, hang it somewhere you will be able to see it daily. Also, if you are so inclined, please share part or all of your family mission statement in the comment section below.

family mission stmt-happy-new-year-pack-5
Click to Download Printable

 

 

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