Why do so many couples struggle with managing their finances together? The answer is straightforward: they’re not aligned. As a cross-border financial planner, I’ve observed that couples who collaborate on their financial goals often succeed, while those who don’t frequently struggle. Look at these practical steps to get on the same financial page… and secure your future together.
Avoid Money Misunderstandings in Your Marriage
Couples often clash over money, with one handling daily expenses and the other focusing on long-term investments. This can lead to misunderstandings if one spouse doesn’t understand the other’s role. You don’t need to pay bills together, but both should be aware of the incoming bills. While choosing specific investments together isn’t necessary, understanding each other’s risk tolerance and financial goals is crucial. Ideally, set unified financial goals by blending your unique perspectives and aspirations.
Practical Steps
When meeting with couples in Israel, I recommend these steps:
- Communicate Openly: Schedule regular financial discussions.
- Set Clear Goals: Identify short-term and long-term objectives.
- Create a Budget Together: Reflect on the family’s income and expenses.
- Track Your Progress: Review goals regularly and adjust plans.
- Seek Professional Advice: Get impartial guidance from a financial advisor.
Benefits of Joint Financial Planning
Unified financial planning offers benefits beyond financial health: It enhances communication, reduces stress, and builds trust. When both partners are involved in financial decisions, they share challenges and rewards, strengthening their relationship.
Joint financial planning doesn’t mean you must merge accounts. For some, combining accounts works well, while others prefer to keep them separate. However, it’s essential to discuss finances regularly to stay informed and aligned, ensuring a smoother and more rewarding financial journey.
On The Goldstein On Gelt Show podcast, we often share valuable techniques for husbands and wives to improve their communication about money. And by “we,” I mean my wife and I – she’s not only a licensed financial professional and CFO but also a financial planning expert. Together as co-hosts of the podcast, we share our real-life stories with you. Tune in at The Goldstein on Gelt Show podcast by clicking here.
Douglas Goldstein, CFP® is the director of Profile Investment Services, Ltd. www.Profile-Financial.com. He is a licensed financial professional both in the U.S. and Israel. Call (02) 624-2788 for a consultation on how to set up your American assets to meet your financial goals. Securities offered through Portfolio Resources Group, Inc. Member FINRA, SIPC, MSRB, FSI. The opinions expressed are those of the author and not those of Portfolio Resources Group, Inc. or its affiliates. Neither PRG nor its affiliates give tax or legal advice.
Published July 9, 2024.