For Family Finance Success, Use 3 ‘Ds’

Kim Ciccarelli Kantor  |  Naples Daily News  |  August 15, 2013

There is no one right way to run your “household financial business,” yet these words of wisdom can lead to success: discuss, design and delegate.

These words of wisdom stem from personal experience as well as the shared intimate lifelong experiences of my financial planning clients.

You may be familiar with the saying, “People do not plan to fail; they fail to plan.” Nothing can be closer to the truth when it comes to running your household financial matters. It does not matter which spouse is the financial guru in the family, nor who actually pays the monthly bills.

What does matter is that you discuss your finances and how you want to run them.

For a great way to begin your discussions, start by designating a certain day and time every week – perhaps, a Saturday morning. Whether you enjoy financial matters or not, spouses need dedicated time to discuss their finances and strategic plans together.

Although critical financial discussions are made jointly in most families, few actually discuss their current circumstances or plan of action. Leave the television off, don’t bring up the kids, and keep an open mind. Review your general cash flow, analyzing income and expenses, and expected cash on hand for reserves by year end. Remember, running your finances is like running a business so plan accordingly. Save the inventory of your assets via compilation of a balance sheet and your portfolio review for your meeting with your financial advisor.

This special time is to discuss how you want to spend and save your money, whether you both have similar priorities or any unforeseen circumstances that will hinder or help your financial health and your expectations for the next six to twelve months. (Examples might be income tax preparation, a new roof, retirement plan contributions, tuition expense, or family vacation.)

After you discuss your financial matters, plan. Set your priorities for the next three months. List them out and design your plan of action. Be sure both of you understand the needs and expected results of your plan. Set a dollar amount to your priority items and designate a time table for completion.

As a final item in running all successful businesses, delegate. Your “household financial business” demands no less. Delegate which of you will be responsible for each area. There is no right or wrong way to do this, and there is no such thing as “splitting up the list.”

As a matter of interest, many families have only one spouse who actually handles all financial responsibilities.

This is okay, as long as together you discuss, plan and delegate.

To be truly successful at this, meet with your spouse each week – forever!