Managing Money Well as a
What are the keys in
planning to grow wealthy together?
Provided by MidAmerica
When you marry or simply share a household with
someone, your financial life changes – and
your approach to managing your money may change as well. To succeed as a
couple, you may also have to succeed financially. The good news is that is
usually not so difficult.
At some point, you will have to ask yourselves
some money questions – questions that pertain not only to your shared finances,
but also to your individual finances. Waiting too long to ask (or answer) those
questions might carry an emotional price. In the 2016 TD Bank Love & Money
survey of 1,902 consumers who said they were in relationships, 42% of the respondents who
described themselves as “unhappy” cited their number one financial error as
“waiting too long” to discuss money matters with their significant other.1
First off, how will you make your money grow? Investing
is essential. Simply saving money will help you build an emergency fund, but
unless you save an extraordinary amount of cash, your uninvested savings will
not fund your retirement.
So, what should you invest in? Should you hold
any joint investment accounts or some jointly titled assets? One of you may
like to assume more risk than the other; spouses often have different
individual investment preferences.
How you invest, together or separately, is less
important than your commitment to investing. Some couples focus only on
avoiding financial risk – to them, maintaining the status quo and not losing
any money equals financial success. They could be setting themselves up for
financial failure decades from now by rejecting investing and retirement
An ongoing relationship with a financial
professional may enhance your knowledge of the ways in which you could build
your wealth and arrange to retire confidently.
How much will you spend & save? Budgeting can help you
arrive at your answer. A simple budget, an elaborate budget, any attempt at a
budget can prove more informative than none at all. A thorough, line-item
budget may seem a little over the top, but what you learn from it may be truly
How often will you check up on your financial progress? When
finances affect two people rather than one, credit card statements and bank
balances become more important. So do IRA balances, insurance premiums, and
investment account yields. Looking in on these details once a month (or at
least once a quarter) can keep you both informed, so that neither one of you
have misconceptions about household finances or assets. Arguments can start
when money misconceptions are upended by reality.
of independence do you want to maintain? Do you want to have separate bank accounts?
Separate “fun money” accounts? To what extent do you want to comingle your
money? Some spouses need individual financial “space” of their own. There is
nothing wrong with this, unless a spouse uses such “space” to hide secrets that
will eventually shock the other.
Can you be
businesslike about your finances? Spouses who are inattentive or nonchalant about
financial matters may encounter more financial trouble than they anticipate.
So, watch where your money goes, and think about ways to repeatedly pay
yourselves first, rather than your creditors. Set shared short-term,
medium-term, and long-term objectives, and strive to attain them.
is key to all this. In the TD Bank survey,
nearly 80% of the respondents who indicated they talked about money once per
week said that they were happy with their relationship. Follow their lead and
plan for your progress together.1
Resources may be reached at 618.548.4777 or firstname.lastname@example.org.
This material was prepared by MarketingPro, Inc., and does not
necessarily represent the views of the presenting party, nor their affiliates.
This information has been derived from sources believed to be accurate. Please
note - investing involves risk, and past performance is no guarantee of future
results. The publisher is not engaged in rendering legal, accounting or other
professional services. If assistance is needed, the reader is advised to engage
the services of a competent professional. This information should not be
construed as investment, tax or legal advice and may not be relied on for the
purpose of avoiding any Federal tax penalty. This is neither a solicitation nor
recommendation to purchase or sell any investment or insurance product or
service, and should not be relied upon as such. All indices are unmanaged and
are not illustrative of any particular investment.
and advisory services offered through National Planning Corporation (NPC),
Member FINRA/SIPC, a Registered Investment Adviser.
MidAmerica Financial Resources and Malan Financial Group are separate and
unrelated companies to NPC.
1 - gobankingrates.com/personal-finance/surprising-ways-money-affects-love-life/