Welcome back to our continuing series, The 10 Beliefs. We’ve outlined the seven most common mistakes we see people make in planning and saving for retirement. In our last post, the sixth belief, we shared the danger of letting political fears have a say in your money decisions. Now we’re going to walk you through the seventh belief, you must talk about finances with your partner or spouse.
If you missed a post, or would like to start at the beginning, scroll to the bottom of this post for a complete listing.
Money is one of the top reasons for divorce in the U.S.. So, is it any surprise that so many are reluctant to talk about their finances?
But what if not talking about your financial situation is part of the problem? We believe you must talk to your partner about money.
Far too many couples who share finances don’t talk about them. Instead, they have one person handle the money, or they divide the responsibility. Maybe it’s avoidance because they believe you can’t fight about what you don’t discuss. Or maybe it’s a source of stress to one partner. Or maybe one person has zero interest in the finances.
As a result, there’s often a gap in understanding that happens. And often that gap is the cause of countless disagreements, because the two people don’t see eye to eye. Why? Because they don’t talk about money, and one person is usually missing huge sections of the puzzle.
It’s no surprise to anyone that finances and money are listed as one of the top reasons for divorce in the US. But it’s not our fault. We’re brought up believing that money is a taboo topic.
We need to stop believing it and bring money out into the light. Start by discussing your finances as they currently stand with your partner or spouse. Lay out your bills, debts, and incomes. Then, talk about what you want to do with your money. Retirement seems like an easy goal, but what does that retirement look like to you? Do you want to help grandkids with college?
Using a financial advisor to help facilitate these discussions can bring a level of clarity to your finances. A financial advisor can also help you prepare for whatever that dream future feels like to you.
We've walked you through the seven most common and costly money mistakes and seven of the things we believe you should be doing. In our next post, we're going to talk about the dangers of fads. We're not talking acid-washed jeans here (though they might be dangerous to your eyes.). You can read that here.
You can also grab all of the mistakes and beliefs in a free download. Grab it here.