Money issues are indifferent to your age, gender, sexual orientation, life stage, and upbringing. And, despite the material wealth and bright smiles we see on the outside, money issues affect rich couples, poor couples, and those in between.
Sadly, financial incompatibility is the leading cause of separation and divorce in North America, which is a shame because it’s completely avoidable!
You and your honey don’t have to become another separation or divorce statistic. You simply need to find a way to respectfully communicate with each other — and follow these seven steps to building wealth together.
SEE ALSO: A financial planner explains how to figure out if you need a prenup — and what to include
1. Get on the same page
Do you and your love have a clear idea of where you want to go, and what you’d like to accomplish in the next five to ten years? Getting on the same page is all about understanding your common goals like home ownership, starting a family, purchasing a vacation home, or becoming debt free.
This is the fun part of financial planning — dreaming of the future and creating practical strategies to make it all happen.
2. Scrap your emotions and sort out your accounts
There’s no room for finger pointing, name calling or dwelling in the past when it comes to money management. Sit down together and open your financial backpacks to form a combined list of your assets and liabilities. Total them all up and determine your net worth.
Your net worth is what the two of you will need to focus on growing to ensure your dreams (those from step one) become reality. Financial transparency is key in this step, even if it’s painful, and will build trust.
3. Curb overspending
Overspending leads to debt and is often the root of heated arguments between couples … especially when one of the partners is the primary culprit. Overspenders and savers can indeed live in harmony, but only if they’ve got a plan to spend within their means. This involves using, and sticking to, a budget and including fun expenditures within it.
See the rest of the story at Business Insider