Family Owned Business

That’s the jumping-off point for any discussion of family money-considering the family as a business. That forces you to approach all family money issues from a rational, systematic point of view. Family financial decisions are settled in a businesslike way-not because someone has broken down in tears or because the primary family breadwinner said: “This is the way it will be.”

Financial decisions made on the basis of emotion rarely prove to be right in the end. This teaches you that financial plans must be well thought out and must be carried out for the benefit of the entire family.

Furthermore, from a money point of view, you and your family actually function very much like a business. Of course, its not a big business, but it is a business just the same. Just like any enterprise, the family takes in income, accumulates expenses and aims to show a profit at the end of each month.

The important lesson here is that, like a real – life business, no family can succeed without planning ahead. Just like well-run businesses,well-run families have:

Short-range plans to cover the next quarter or next six-twelve months.

Medium-range plans to cover the next three years or the next five years.

Long-range plans to give the family financial guidance for the next 10 or 20 years.

The most successful companies are hard at work today, planning how to make a success out of products that won’t even hit the market for many years to come. The most successful families are similarly hard at work-setting goals for the future and working as a team to achieve those goals.

And that’s what family money is all about- TEAMWORK

Between husband and wife

Between young parents and growing children

Between aging parents and grown children.

Between brothers and sisters; aunts and uncles; children,parents and grandparents.

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