The Millionaire Blog

During our flight to Tampa, FL , my wife and I talked about a lot of things. How we go about setting goals was passionately discussed. We discovered the way in which each one of us sets goals is very different and could inadvertently lead to failure.

The way I set goals is simple. I look at what I want to accomplish, and by when, then I work backwards to determine what I need to do to reach my goal. If, for example, I want to make $100,000 extra in 10 months, I know I have to make $10K every month, then whatever amount every day etc. It gives me short term goals that will help me reach my long term goal.

Let me give you a personal example to better illustrate what I mean. The goal is to be completely debt free.

I want to be debt free by April 2006. By debt free we mean we mean, no credit cards, no loans, we owe no one anything except our mortgage.

I take how much we owe and divide by 6 months. This give me how much extra we need to apply towards debt every month until until April 2006 to be debt free. It’s then a matter of earning the extra money to reach to get there.

My wife on the other hand, has taken what we earn, subtracts living expenses, and bills, and what is left over she applies to debt every month. Her time line has us out of debt by December 2006.

Her method is based on existing effort, but, according to her realistic. My method is based on pushing the envelope and on improving on existing efforts. She argues my way is not realistic. I argue by using her methods we never improve performance.

After much discussion we came to the conclusion that neither way is inherently wrong. It all depends on how much pressure you want to put on yourself and what your time frame needs to be. Since there is an age difference of 13 years between my wife and myself, I tend to have a much bigger sense of urgency which leads met to push hard on certain goals. That can, however, be unfair to her and to those around me.

So, the compromise is, we meet in the middle. Out of debt by August 2006. Enough time to be somewhat realistic, yet enough pressure to cause us to improve on what we are presently doing.

So when you and you spouse don’t agree do the following:

1) Talk about the difference and try to figure the basis for the different opinions. In our case, may age, creates a bigger sense of urgency.
2) Find a middle grown for compromise. If you and your spouse have the same end in mind then figure a way to get there by compromising.

Working together is great and benefits everyone.

Regards