For Love and Money

Relationships and money are two subjects which gain a lot of interest from people. Perhaps that’s because these areas are ones where people would like to see improvement in their lives.

In fact, according to surveys, couples fight about money twice as much as they fight about sex. The American divorce rate is nearly twice what it was in 1960, though it has declined somewhat since hitting an all-time high in 1980.

So how do you dodge this bullet? How does one become financially compatible with his/her partner? Here are some things that can be done to help along the journey of love and money:

Open and Honest Communication

This would be a good piece of advice to couples on any subject but particularly so with money. Money is a very personal subject. It represents so many things to a person: success, status, power, security, importance. When couples fight over money, inevitably they view it as fighting over very personal issues. So try not to fight over money. A good way to do this is to be honest. Never hide or lie about a single dollar of spending. This includes getting that special item on sale and “rounding down” to make it sound less expensive than it actually was.

Common Goals, Common Purpose

Talk about your financial goals often and in detail. It’s vital to sit down and coordinate your future plans with regard to finances. Think about it. If you’re not working together toward a common goal, then chances are you’re at odds with one another to some degree.

Retirement & Savings

You’re hopefully going to grow old together. Start planning for it now. Retirement savings plans are easily accessible and are worth every penny you stash away when you’re sitting on that cruise ship smiling at one another, sipping on Mai Thais.

Start a savings account together and an emergency fund. Invest together. Do it now. You’ll be glad you did. Save your money. Spend less than you earn, and avoid the stress of trying to juggle expensive bills that you can’t afford. Time spent with one another is the best investment a couple can make.

IMPORTANT DISCLOSURES

Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities.

To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law.

Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.

These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable– we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

David Lerner Associates does not provide tax or legal advice. The information presented here is not specific to any individual's personal circumstances. Member FINRA & SIPC