What Are Your Long-Term Financial Goals?

“If you aim at nothing, you will hit it every time.” Zig Ziglar

It has been shown that talking about money is uncomfortable and because of this, couples will keep their financial picture under wraps longer than they should. Watch enough reality television and you will see couples shopping for engagement rings before they explore what financial goals they each have and how they plan to achieve them. It isn’t surprising that couples marry without knowing what their spending versus saving style is, how much debt they carry, let alone what they want for their financial future.

As a couple, you should explore what your long-term financial goals are and look at what you will need to do in order to bring them to fruition. Gail Vaz Oxlade – financial writer – advises couples, "Have conversations about what it is you're trying to achieve. Don't just assume you both want to buy a house, and even if you say you want to buy a house, do you want to buy the same kind of house? You have to have the conversations and you can't just assume that the other person is on track with you if you don't ask the question."

Take this example of buying a home... It’s a great financial goal to have, but are you really prepared? People buy a house and get underwater because they forgot about taxes, condo fees, or closing costs. The cost for heat is too high or the roof needs a repair. In addition to being prepared to meet such goals, it’s important to know whether your partner shares the same dream.

Do you want to own a house? Is it doable in the area you are currently living? Can you afford it on your own or will you need a co-signer? At your present salary, how long will it take to save for a down payment?

Do you want children? Do you know the cost to raise a child is more than two hundred thousand dollars? Will one of you stay home instead of working to cut on childcare costs? Does one or both of you want the best of everything for your children, including private school?

Do you want a vacation property? A boat? A yearly tropical vacation?

Don’t forget retirement. It may seem so very far away when you are young, but it’s never too soon to plan. Do you want to retire at fifty-five?

What about funeral expenses? Are you planning ahead for things like this? The average funeral in Canada costs between five and ten thousand dollars! Do you want to leave an inheritance for any children you may have?

In addition to the needs of life, what are your dreams? Have you always wanted a horse? Does your partner want to visit France? You might think not all goals are financial goals, but often they are. You want to get a pilot’s license? How are you going to pay for it? You want to spend the night in a European castle? How will you pay for your flight there? All the bucket list items we have likely have a price tag attached.

All this requires planning. It may even be wise to sit down with a financial planner and obtain a second opinion on whether your goals are achievable at your current income levels and get some advice as to how you can best work towards them.

Once you agree on what your goals are as a couple, set down a plan on how you will achieve them. Not all of us are great at handling finances. Both parties should know what is going on in this regard, but based on money managing skills, one may be the better choice to hold the reins. And even if you’re taking equal roles in money managing, it’s important to ensure you’re on the same page, so bills aren’t being paid twice – or not at all – because of miscommunication.