Money is one of the most controversial inventions of mankind. They are one of the main causes of divorce and quarrels. For many couples with common interests and similar values, this is the only stumbling block. Financial consultant Andy Bracken gives ten tips on how to direct financial relations with a partner in a peaceful direction.
Discuss the risks. Men are traditionally more prone to risky investments that promise greater rewards: for example, they are more likely to play the stock exchange. Women, as a rule, are more practical than their partners, they prefer safe investments — they are more comfortable opening a bank account. Before discussing specific investment opportunities, find a compromise on the issue of security.
Once and for all, develop a common position regarding the education of children. Constant disputes about whether children will study in a private or public school, and even more so, the transfer of heirs from one school to another is too much burden for the nervous system and for the budget.
Get into the habit of opening emails the day you receive them., and discuss all bills with a partner. Unopened envelopes can lead to fines, lawsuits and, as a result, quarrels.
Decide on a monthly amount that each of you can spend however you see fit. Ideally, you may have joint accounts for basic expenses and savings, and debit cards for «pocket» money.
Keep track of financial receipts and expenditures. Following this advice will help you avoid most financial conflicts — you can’t argue with the math! However, most couples stubbornly refuse to take control of their expenses, and this is especially difficult for men.
The best way to understand if you can afford certain expenses is to analyze your monthly expenses, determine which ones are mandatory, and calculate the balance of funds that you can freely dispose of.
Có kỷ luật. If you tend to spend more money than you can afford, set up a «safe» account that will hold the amount needed to pay taxes, utilities, insurance …
What if one of you wants to live now and pay later, and the other is sure that he needs a «financial pillow»?
Be clear about your ambitions before you start living together. It may seem unromantic for you to talk about money at the beginning of your life together, but before discussing the number of future children and a mortgage, tell your partner about your priorities in life.
What is more important for you: to fix the current roof in the country or to buy a new car? Are you ready to travel on credit? What if one of you thinks it’s okay to live now and pay later, and the other is sure that he needs a «financial cushion»?
Talk about your retirement plans ahead of time. Often, couples who previously peacefully resolved financial issues start a real war in retirement. Previously, they did not spend much time together, but now they are forced to see each other almost around the clock.
Suddenly it turns out that one partner wants to actively spend: travel, go to restaurants, a swimming pool and a fitness club, while the other is inclined to save for a rainy day and spend all his free time in front of the TV.
Structure your debt. If life has developed in such a way that you owe a significant amount, the worst thing you can do is run from creditors. Interest on the debt will rise, and your property may be seized. Deal with the problem as soon as possible: discuss with the creditor the possibility of structuring the debt or repaying it with existing assets. Sometimes it pays to consult a financial advisor.
Nói chuyện với nhau. Talking about money regularly—once a week, for example—will help clarify current financial issues and be an effective prevention of quarrels over money.
About the author: Andy Bracken is a financial advisor.