Couples and Money

by Phil Laut
Author of Money Is My Friend
and Wealth without a Job

Emerging Entrepreneur eZine VOL. 45



Forward this Web page to friends, family, colleagues and everyone in your address book interested in greater wealth and financial security. They will absolutely thank you.

In this issue, you get invaluable guidance for couples in dealing effectively with financial opportunities and challenges.

Your relationship with your romantic partner has many sides to it. It is a romantic relationship, a physical relationship, a social relationship, perhaps even a legal relationship, but it is also a financial relationship. All of this is probably not the news. However, as you have also probably already discovered, stress in the financial area spills over and creates discord in the other areas. This issue of the Emerging Entrepreneur eZine is about dealing more effectively about finances with someone you are close to.

Money is consistently named as a leading cause of divorce. It is doubtful that too much money would drive a couple apart. Too little money may cause some depression and disappointment, but not necessarily a divorce. The inability to discuss money without fighting and the inability to contribute to each other's financial well being is what causes problems.

The safety that we experience in intimate relationships frequently permits thoughts and feelings to come to the surface that remain suppressed in other relationships. The best financial arrangements for your household can be gained by experimentation. Most people handle money in their relationships the same way that their parents did. Unless your parents' financial life was totally harmonious, then it might be worthwhile to experiment a little. Parental arguments about money often leave people with the idea that money is not a socially acceptable topic of conversation because of the upsets that seem to be caused by discussing it.

If you find it impossible to discuss money with your romantic partner, then important financial decisions and spending behavior will be determined by your momentary emotions and unconscious thinking patterns rather than by the effective alignment of your decisions and behavior with your financial goals. It is essential to manage your finances in a businesslike way if you desire to achieve more and accumulate more.

Successful negotiation can be accomplished by having a financial discussion with your partner at regularly scheduled intervals (the beginning of the month is usually a good time). At this discussion, make agreements about who will pay how much of each of the expenses. This is a reasonably risk free way to do it, even if both of you are afraid of negotiating, because the agreement only lasts for a month. At the beginning of the next month you will have had a month's experience with the agreement you made and an opportunity to make a different one or just change parts of it.

Many couples find it difficult to discuss money issues in a straightforward and honest way. A comment I frequently hear is "Talking about money always leads to a fight." It is essential that you practice the following suggestions so that you and your partner can learn to discuss your finances without criticizing each other and yelling at each other. If you don't, then you won't get much more money than you already have. In other words, as long as you believe that money leads to fights, you may conclude: if we have more money, then we'll have more fights. This conclusion can result in unconscious sabotage of even the best-made plans to accumulate wealth.

If the woman is the one who stays at home and takes care of the house and the man is the only income producer, then it is reasonable for her to receive a salary for the household managerial services she provides. If he objects, then she can suggest that he look in the local newspaper to find out how much live-in maids cost these days. Conversely, if the man is the only income producer and pays the rent or mortgage payments; then there is no reason that the woman should not pay rent out of her salary. I always recommend that both people in an intimate relationship have their own checking and savings accounts. Joint checking usually turns into a race--a race to see who can spend the money first or a race to see who can be the more martyr-like about not spending it.

It is inevitable that you and your partner will have disagreements from time to time about money and about other issues as well. If two people agree on everything, you can be sure that one of them is doing all the thinking. The purpose of the methods described in this article is to enable you to reduce conflict about finances, resolve quickly the conflicts that do occur and to enable you to contribute to each other in defining and accomplishing your goals. If the financial values of your spouse are vastly different from yours then you are bound to have problems unless you can reconcile the differences. To state an extreme example, if one partner insists on saving every spare penny to buy a house and the other insists on spending every spare penny gambling at the local race track, then resolution of these differing values is an essential pre-requisite to financial harmony and co-operation. That two people with such greatly different financial values would marry each other or stay married for very long is unlikely.

Most couples already have substantial agreement about financial values and some differences. Learning to contribute to each other's financial success involves identification of similar values and minimization of the conflict caused by differing values. Keeping all of your money in joint accounts makes each and every expenditure a source of potential conflict. If each partner has agreed upon money of his own that he or she can spend, save or invest without justification or explanation, then the potential for conflict is greatly reduced. Keeping all of your money in joint accounts is most often a sign that a couple is not effectively discussing their finances and is also a source of conflict. Many couples who keep all of their money in joint accounts do so simply because their parents did and have not considered alternatives. If your parents had a less harmonious relationship regarding money issues than you would like to have, surely it is time for you to consider alternatives.

Since I first wrote this piece in the 80s, I discovered that the delightfully irascible Dr. Ruth, famous sex therapist, also favors the use of separate bank accounts for couples.


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