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What does money have to do with it?

Love and money are often not talked about in the same conversation however money issues are still the leading cause for divorce. With Valentine’s Day fast approaching and over 6 million marriage proposals expected, maybe now is the right time to mix love and money. 
 
So, what is the first topic for those about to get married to discuss?
The first topic is to talk about each other’s current financial situation. How much debt do they have, do they have any savings and what is their credit score situation. If you are building a life together, these are all important facts to know so that you are committing to a relationship with full knowledge.  Financial stress can be a huge burden and starting a life together without knowing these important facts can make it even more stressful.
 
Should couples discuss their long term financial goals?
Yes, the next most important topic to discuss is each other’s views their shared financial future once married…basically  what will be the priority.  Is it to have nice cars, great vacations and expensive luxury items or is it build a savings fund, buy a house and drive used cars.  These expectations for the future can be a red flag for potential troubles down the road if there is wide disparity in priorities. Opposites can have a strong relationship as long as there is compromise and understanding of each other’s position on important financial topics.
 
What is one thing that couples should understand about each other regarding money?
The biggest is that each has a unique relationship with money.  For example, one person may think that anything over $100 is a huge expense and needs to be discussed with their partner. The other person might think as long as it is under $1,000, you are free to spend away without consulting your spouse.  This can lead to a problem unless couples talk through this and recognize each other’s money tolerances and set a threshold when spending needs to be discussed with the other spouse.
 
Is this advice only for those about to get married?
These money conversations are really good for any level of relationship, for those just getting serious to those who have been married for a few years.   Money is a topic that is rarely discussed and should be all the time as you work as a team to reach shared financial goals.  Don’t just assume your spouse really agrees with your financial plan, especially if you have never really talked through your financial future.


Posted: 2/12/2015 with 0 comments

Categories: Money Matters, Relationships



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