Wednesday , 26 July 2017


6 Money Behaviors That Could Ruin Your Marriage (and How to Fix Them)

Couples can be a galvanized force to either greater wealth or rapidly deteriorating theirinvesting-5 combined net worth. Below are the top 6 unfavorable money behaviors exhibited by couples. Be open to the signs and fix them – or walk!
The above comments are edited excerpts from an article* by Richard Russo, CFP (moneymusethoughts.wordpress.com/) entitled 6 Money Habits Of Unhappy Couples.
The following article is presented courtesy of Lorimer Wilson, editor of www.munKNEE.com (Your Key to Making Money!)and www.FinancialArticleSummariesToday.com (A site for sore eyes and inquisitive minds) and has been edited, abridged and/or reformatted (some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. This paragraph must be included in any article re-posting to avoid copyright infringement.
Russo goes on to say in further edited excerpts:
Married or unmarried – it doesn’t matter. We’ve all heard the horror stories of couples suffering in a toxic money mix. Financial harmony is crucial to a couple’s long-term synergy with money. From my experience, the ones with cohesive financial strategies are the most successful.
Over the years, I’ve documented several unfavorable money behaviors exhibited by couples. In greater than 95% of the cases observed, the relationships ended on bad terms, so be open to the signs and fix them – or…[suffer the consequences.]
Here are the top 6:
1). They disrespect each other’s credit
One of the worst fiscal violations I’ve witnessed is how credit is misused in a relationship which causes a party’s credit score to falter as credit card balances are increased leaving the trusting partner in a relationship, on the hook for the bills. I have seen otherwise smart individuals allow a partner to use their credit and turn a blind eye to misuse. Until it’s too late and they’re in a hole financially – spending years paying back big debts.
Rule: Never permit a loved one, including a marriage partner to take advantage of your available credit and perhaps ruin your credit score, whether it’s intentional or not. It’s not a matter of trust; it’s a matter of control. You must be the steadfast gatekeeper of your available credit and scores. If it’s true love, the other party will appreciate your discipline. If you do share credit, make sure to carefully examine all credit card statements and access credit reports annually for free at www.annualcreditreport.com.
2). Lack of communication
Especially when it comes to life-changing financial decisions or big purchases. It’s ok if you fail to mention lunches or an occasional discretionary purchase. When it comes to large expenditures like expensive durable goods or making big decisions that may affect both parties like a new job offer or decision related to retirement, it’s best to share all relevant information with a partner or spouse before moving forward. Even if it’s a wise decision, the action of sharing and receiving feedback is crucial to the health of a relationship you cherish.
Rule: Before financial decisions bigger than $100 bucks are executed, think twice and open up beforehand. Take to heart information shared through open dialogue. Get an objective third party involved in the mix to listen to both sides and weigh the evidence.
3). Little consideration for the blueprint
Deep in you is a money DNA. Since a small child, you have handled money based on experiences. You also learned from observation and communication – parents, grandparents. If your money mindset conflicts with a partner, that’s ok. There are methods of compromise. If your money mindset is disregarded or even ridiculed, then it’s time to question the viability of the relationship.
Rule: Whether you’re a deep saver or big spender, be receptive to the manner you’re treated if your partner disagrees with your money DNA. The couples who endure are the ones who find a working medium or a hybrid DNA strategy. The key is to watch for language of judgment and money behavior that jeopardizes the current situation or the health of the future household balance sheet.
4). Multiple bailouts are acceptable
You know the type. They mess up with money and then seek others to bail them out like parents or partners. Then the same reckless behaviors are repeated and bailouts continued. It’s bad news. Rarely do I observe couples last long traveling this endless loop. Usually, an observant partner is suckered in more than once and leaves the relationship financially and emotionally fragile.
Rule: A one-time bailout, depending on your financial situation is acceptable. No excuses or money provided when similar mishaps are repeated. It’s a hard rule and it will save you financially. Perhaps you leave with your self-esteem intact, too.
5). Financial success is resented
According to a Pew Research Study from May 2013, a record 40% of all households with children under the age of 18 include mothers who are either the sole or primary source of income for the family. To keep it in perspective, the share was 11% in 1960.
Since the financial crisis I have witnessed women taking additional charge of their finances (and the families) and men in the relationship growing increasingly resentful.
I have worked with couples where women have become increasingly unhappy when partners have taken on additional work responsibilities and time away from their personal activities.
Resentment is poison to any close relationship and detrimental to elevating finances to the next level.
Rule: A resentful attitude over a partner’s success requires thorough and truthful self-reflection. Instead of wasting precious energy on negative emotions, objectively witness and attempt to find ways to mirror the good habits of a successful partner. Ask for guidance. Be open to criticism if it’s positive and leads to self-improvement.
6). Fractured retirement planning and savings goals
Couples who are hesitant to blend retirement goals and fail to align their efforts to meet jointly-created goals, ostensibly fall behind or at the least, miss out on the synergies that accompany working together toward a comfortable retirement.
Rule: Retirement planning is a partnership objective. Coordinating retirement account salary deferrals, examining company retirement plan allocations as one and periodically reviewing progress together must be mandatory for couples who are serious about the quality of their retirement years.
Conclusion
Couples can be a galvanized force to greater wealth or to rapidly deteriorating their combined net worth. Ongoing financial drama can ruin a relationship. Be open to the signs, fix them or walk!
Editor’s Note: The author’s views and conclusions in the above article are unaltered and no personal comments have been included to maintain the integrity of the original post. Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor.
*http://moneymusethoughts.wordpress.com/

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