Is your money married?
Analysts say a couple's wealth is four times that of a single personSunday, September 19, 2021
PERSONAL finance guru Dave Ramsey, United States-based founder of Financial Peace University and the Total Money Makeover, advises that married couples who pursue separate financial goals have zero likelihood of building wealth.
Couples do not hesitate to share a roof, a bed, meals and even a shower on a daily basis, but ask many of them to disclose all their finances to each other and they might begin running in opposite directions. It is a recipe for mediocre financial results or even poverty, as it relates to wealth building.
Many men and women are married but their money is still living the single lifestyle, ensuring that, together, they will never become wealthy.
Jay Zagorsky, a research scientist at Ohio State University, asserts that couples in long-term marriages each have about twice as much wealth as single people who never married.
The trend is that, together, a couple's wealth is four times that of a single person. Zagorsky relates that the divorced see a rapid decline in wealth.
He indicates that couples in a committed relationship, but not married, are worse off financially than married couples because they don't fully commit to sharing their finances and expenses.
It is well established that money is the number one issue married couples fight about. If you can reach agreement on spending, budgeting, saving, investing and long-term goals, the marriage is likely to last if this one area is conquered.
Refusing to talk about money, share accounts and build on financial goals together is a big sign of trouble, one indicating a lack of trust and a need for marriage counselling.
Getting rid of debt, deciding to start a business and saving for retirement may all be impossible to execute if there is no agreement. Here are seven bridge-building recommendations from daveramseysolutions.com:
1). Pool money earned
Some couples keep different accounts and pay bills separately but, marriage is a partnership. It's no longer “his and her money”. Put all of your money together and begin to look at it as a whole.
2). Discuss lifestyle
If you have income that doesn't support expensive tastes and you (or your spouse) have an expensive lifestyle, it's a problem. How you live has to line up with your actual income.
3). Recognise your spending style
Opposites tend to attract and that's okay, as long as you both try to agree on the major areas – one of which is money. Listen to each other, give feedback and encouragement, not only criticism.
4). Who earns more?
Sometimes the spouse bringing in the most money can feel entitled. On the other hand, the one who makes less might feel like they shouldn't have much to say. They should both view funds coming in as “ours”, not mine or yours.
5). Don't hide what you buy
Unfaithfulness also includes opening a side bank account or stashing away cash, and it is deceitful. This also applies if you have a credit card your spouse knows nothing about.
6). Dream together
When you have developed budgets and goals together, do your best to stick to the plan if you want your partner's faith in you to grow. Goals also have to be realistic. Buying a house right after you are married may not be practical. Be prepared to wait for some dreams. When, together, you have killed debt and reached medium-term savings and investment goals, it is a better time to intensify long-term efforts and make asset purchases like a home.
7). The children are not in charge.
Children can really pressure you to make purchases which are not included in your short-term plans and can derail your well-planned budget. Make sure to include their allowances and make them know that savings and side hustles such as paid chores will be their route to getting what they want, as daddy and mummy are on a financial plan. Budget for these allowances and paid chores.
Having a husband or wife as your financial partner will reduce mental stress and increase wealth. Your marriage is more likely to last if your spouse has your back, so to speak.