Imagine you’re on a long road trip with a buddy. Both drivers need to agree on the destination, determine when they’ll make pit stops, and keep the car running smoothly. The same principle applies to managing your finances. You and your spouse need to agree on your goals, strategies, and tactics. A unified approach strengthens your financial health as well as your relationship.
The Power of Teamwork
In over three decades as a financial professional, I’ve often felt more like a marriage counselor than an investment specialist. Couples who plan their finances together are typically more successful. When both partners are involved, they bring diverse perspectives and ideas, leading to better decisions. It’s not about who earns or spends more, but about creating a shared vision.
Recently, a friend mentioned a heated debate in a women’s Facebook group about whether wives should have joint accounts with their husbands. This debate highlights a critical point: a solid marriage often includes a shared financial future. One couple I work with transformed their marriage by implementing monthly “Budget and Big Picture” meetings, a habit they passed on to their children. This practice improved their financial health and strengthened their bond. Aligned on their financial goals, smaller financial decisions became easier with a clear framework guiding them.
Steps to Strengthen Financial Partnership
- Open Communication: Discuss finances openly to build trust and avoid surprises. Respect differences and find common ground.
- Set Clear Goals: Cover basics like paying bills and saving for emergencies. Include long-term goals like buying a home, education, travel, and retirement.
- Regular Reviews: Hold regular financial meetings to keep both partners informed and involved.
- Divide Responsibilities: One handles daily finances but involve both in major decisions to reduce stress and ensure transparency.
- Celebrate Milestones: Celebrate achievements like paying off debt or saving for a vacation to maintain motivation and strengthen your bond.
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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 October 29, 2024.