By Scott Ford, CEO, Founder & Wealth Advisor of Cornerstone Wealth Management Group
If you do a simple search on the topic of relationships and finances, you’ll come across countless sobering statistics. For example, you’ll find that money is the primary reason for arguments between couples, with many couples averaging three fights per month revolving around financial issues. You’ll also learn that 3 in 10 married adults admit to potentially deceitful behavior about money and that disagreements about finances are the most common predictors of a future divorce.
Why is it so difficult for money and love to peacefully coexist? Finances tend to be an emotional topic for most people and cause plenty of stress in everyday life, so many couples attempt to avoid these conversations at all costs. In addition, everyone has their own opinion on how to manage money and most of us also have a unique financial personality. Some of us are savers, some are spenders. Some of us may be conservative, while others are free spirits. These differences can cause friction and discord, which then affects all other aspects of the relationship.
But no matter what the statistics tell us, money doesn’t have to be a stress point in a relationship. Here are a few simple strategies that may help couples avoid financial friction
It’s important for both partners to offer full disclosure of their finances and be open about expenses, regardless of whether you’re married or you live together, have joint accounts or separate bank accounts. You and your spouse should be aware of how you spend your money, especially when it comes to significant expenses, loans, or ongoing fees. Studies show that around 49% of financial arguments are about unexpected expenses. By maintaining an open line of communication regarding spending habits and upcoming bills, you may be able to avoid such confrontations.
Set Healthy Boundaries
It’s important for couples to be on the same page regarding their finances. Sit down together and discuss how much can be spent per month on non-essentials. Establish and agree upon a few basic guidelines and create a structure for how you will spend and save money. If one of you is more disciplined than the other, you might consider having the disciplined spouse manage the monthly budget and spending.
Work As A Team
Most often, one spouse acts as the Chief Financial Officer of the household, managing all bills, budgets, savings, investments, and insurance policies. However, it can be helpful for both partners to understand their spending versus their saving. If time allows, sit down together once a month to review credit card statements, account transactions, and other bills and check for any possible errors. Ongoing input from both partners will strengthen your relationship and create a true partnership.
Set aside a portion of pocket money that you and your spouse can each spend every month on something you love, whether it’s a massage, a round of golf, or a steak dinner. Along with saving for long-term goals, set small objectives you can reasonably accomplish each month and celebrate your success.
Find An Unbiased Financial Partner
Sometimes the best way to ease money tensions is to work with an objective third-party, whether that’s a financial professional, a marriage counselor, or both. A financial professional can work with you and your spouse to review your financial landscape, identify any gaps in your insurance coverage, assist you in establishing short and long-term goals, help you stay on track, and provide professional and knowledgeable advice.
Although the topic of finance can occasionally cause tension, money doesn’t have to become a constant source of concern in a relationship. Invest the time to address spending habits and savings goals, uphold transparency regarding purchases, and communicate effectively.
At Cornerstone Wealth Management Group, we offer trust, transparency, and accountability as you we walk with you on your financial journey. We partner with you to create comprehensive wealth management plans to pursue financial freedom and a work-life balance that prioritizes what is most important to you. To learn more, download our free report, Investment Process. To get started pursuing true wealth, schedule an appointment by clicking here now. If you have questions, you can reach me by phone at (301) 739-8505 or by email at firstname.lastname@example.org.
Scott Ford is CEO, Founder and Wealth Advisor of Cornerstone Wealth Management Group, serving entrepreneurs, business owners, executives, and their families. The firm specializes in business liquidity strategies and SBA financing strategies. It is Scott’s mission to help his clients pursue financial freedom and live a balanced and fulfilled life.
Scott is a Wealth Advisor and Registered Financial Consultant (RFC). He was recognized as one of the 20 Rising Stars of Wealth Management by Private Asset Management Magazine in 2008 based upon assets managed of $1 million or more per client. Since 2005, Scott has been an active financial technical analyst.
Clients often choose to work with Scott because of his experience with the challenges business owners and executives face as well as his firm’s disciplined process. His personal and proactive approach is designed to bring clarity and simplicity to the complex issues of financial management. For over 20 years, he has been helping his clients define and pursue their own unique version of “True Wealth.”
Scott is the author of three books: Financial Jiu-Jitsu: A Fighter’s Guide to Conquering Your Finances, The Widow’s Wealth Map: Six Steps to Beginning Again, and the New York Times Bestseller, The Sustainable Edge: Fifteen Minutes a Week to a Richer Entrepreneurial Life.
He and his wife, Angie, reside in Hedgesville, WV and have two wonderful children as well as a dog and a cat. In addition to spending time with his family, Scott is a voracious reader and enjoys woodworking, Brazilian Jiu-Jitsu, golf, hunting, permaculture and beekeeping; basically anything outdoors.