FINANCIAL RESOLUTIONS FOR A CONFLICTING COUPLE
FINANCIAL EFFECTS OF MARRIAGE
· One of the most crucial changes you face after marriage is the financial reality.
· Single income can convert to double income, but so can the debts.
· Buying assets may become easier, but insurance liability could increase.
· Your spending and saving habits could become a mismatch, even if your long-term goals may remain unchanged.
· In fact, money is the primary reason for all marital discords, due to conflicting financial ideologies and habits that you bring into a new relationship.
1. SPENDER SPOUSE Vs. SAVER SPOUSE
· The spender spouse normally spends lavishly and impulsively.
· The saver spouse normally resents such spending and goes over the edge.
· Formulate clear goals for long-term spending.
· Work out a monthly budget regarding utilities and fixed expenses.
· Create a "No Questions" fund reserved for impulsive purchases.
2. HIGH RISK SPOUSE Vs. LOW RISK SPOUSE
· The high-risk spouse normally wants to invest savings in high-risk investments waiting for them to rise astronomically one day.
· The low-risk spouse normally wants to put money only in safe post office schemes.
· Try to find middle ground instead, such as investing in mutual funds and large-cap stocks.
· Choose a safer index fund for the low-risk taker for shedding risk-related inhibitions.
· Fix an amount for the high-risk taker to curb urge for investing in risky ventures.
3. EXPERIMENTAL SPOUSE Vs. CONSERVATIVE SPOUSE
· The experimental spouse is normally reckless, or clueless, about asset allocation.
· The conservative spouse is normally sticky to one favourite asset all the time.
· Consult a financial planner for adequate diversification of your asset allocation, to spread your risk as well as benefit from returns of various asset classes.
4. GREGARIOUS SPOUSE Vs. CAGEY SPOUSE
· The gregarious spouse normally prefers a joint bank account for household purposes or joint ownership of a house, and interested in discussing financial details.
· The cagey spouse normally prefers a separate account and an individual house ownership, and may not want to divulge financial details.
· Merging finances is one of the first big decisions for married couples, as some may feel very natural about it, while others may be nervous to give up their financial identity.
· Open separate accounts for your credit card bills and other personal expenses, and a joint bank account for household payments, utility and grocery bills.
· Decide contributions towards different household baskets, depending on the income ratio, and make allocations from the individual accounts, to give room to each other for discretionary spending and maintaining independence.
· Split the ownership of assets in a way that the savings are distributed evenly.
5. RESPONSIBLE SPOUSE Vs. SHIRKER SPOUSE
· The responsible spouse normally manages all the finances, even if over-burdened.
· The shirker spouse normally hates to shoulder the financial burden or get saddled with book-keeping.
· Exchange roles from time to time, or distribute the work, depending on the time and acumen of each spouse.