Start 2009 by taking control of your finances and building a stronger base for you and your family. Here’s how to get started.

• Prepare a financial statement and determine your net worth

This is a simple equation: Assets – Liabilities = Your Net Worth

List all your assets including investment assets (i.e. money market, savings accounts, stock mutual funds and CDs); retirement funds (i.e.. IRA, 401(k)); and real estate assets (what you believe is the market value of your properties.)

Next deduct all your liabilities. These include credit card debt, mortgage balances, car loans, equity lines of credit etc. In addition, include a notes section next to the amount that lists the terms such as the annual percentage rate, minimum payment, and if the bank has lowered the ceiling on your line of credit.

The result equals your net worth. If you do this annually each year, you will see if you saved money, spent money, invested your money and if your net worth grows each year. If not, why not? Have your interest rates or monthly payments changed? Have your spending habits or lifestyle changed?

• Create an emergency fund of six months to two years of expenses

The amount should be enough to cover your living expenses and needs of your children for an extended period of time. These reserves can be held in a savings account or in Certificates of Deposit if you are laddering them.

• Establish a budget

List all your sources of income then list all of your fixed and variable expenses. Be very specific and list by category such as housing expenses, medical costs, and childcare costs. Establish a budget for all the expenses, especially discretionary expenses which include entertainment, clothing, and travel. Set family and individual goals for managing this budget.

Once you have your budget, set realistic financial goals and write them down. Examples of annual goals are to pay off all credit card debt, contribute money to your retirement account, save for a vacation and/or save for your child’s college education. List the goal and also where the money will come from to meet that goal.

Also, if you are in a relationship, establish a “don’t ask fund” for each partner as part of your budget. This is a set sum that each of you can spend without questions from the other and without guilt.

• Resolve that money will not be a source of conflict in your relationship.

Most of all, communicate with your family about the budget, where the money is coming from and how it is being spent. One way to have fun discussing the family finances is to have everyone in the family take a money personality test. Does money represent power, control, happiness, freedom? Are you a spender, or are you frugal? Do different members of your family have different money personalities? Get together regularly over dinner or schedule family time to discuss and keep track of your finances.

For more information see my list of the Ten Financial Rules for Women and visit www.milleradvisors.com