Most Common Couple Money Mistakes, Part 2

You’ve adjusted your accounts to what works for you, you’ve agreed on a budget you both can live with and tackled the issue of earning discrepancies.  You’ve put your plan into action and now that some of your financial goals have been accomplished like an emergency fund and saving for retirement, you’ve probably started brainstorming a few more.  Here are a few next steps to help you make it to your golden anniversary in happy financial bliss.
     First Thing’s First
Which, out of all of your fiscal goals between the two of you are you to achieve first?  For example, Is it paying off your partners debt from earning their MBA or sending your child to college?  While these carry different emotional importance to each of you, they also carry different financial impacts on your budget.  They are both equally noble goals.  The bottom line, however, is purely a math equation.  Let the simple, logical math be the decision maker in what you prioritize as your next financial goals.  Purely based on numbers it is most likely that paying of the debt first would make more logical sense.  Paying an interest rate that’s say, 10% on your loans is something that you owe now, where as paying into a college savings fund may be only accruing  7% interest of potential earnings.  It makes sense to save money by paying the higher financial burden off first.  There is a slew of situations where a simple mathematical comparison can save a lot of argument or torture over what's the right decision.
     Protect Yourself
Agreeing on what kind of insurance and how much coverage you need can be tricky.  Again, just how opposites tend to attract financially, same goes with cautiousness.  There is usually a partner who feels more comfortable with a greater amount of protection.  It's important to keep in mind that life insurance isn’t about what you feel you need, it's about what would make those you left behind feel secure.  Having a large portion of income cut off can be a huge financial burden on your partner.  In the very least funeral or medical costs should be covered, but anything else to which your paycheck would have contributed, too.
     Movin' on Up
Somewhere along the line it is likely that one of you will get that big promotion and along with it a nice fluffy raise!  Cheers!  While this is good news all around, it means another discussion about financial priorities.  While to one of you a bigger raise means added spending money to the budget and a bump in quality of life, to the other it might mean more to put away for a rainy day.  Again, there is middle ground.  Start with what you agree on.  With your Retirement, Emergency Fund and paying off debt all adequately covered, consider where you’re already making some progress. Maybe put your money towards something that’s lacking.  Something that your house has needed for years, or even a relocation.  A large chunk of it put away to accrue interest for college or even pay off your car.  Starting with where you have common ground is always a good start.  But by all means, make sure you put it in your budget to celebrate all of your partner’s hard work that’s paid off!


So go forth and be merry and married in happy, blissful financial harmony!  Can there ever be such a thing as a fairy tale ending for financing?  No, just as love and partnership isn’t exactly like the movies, either.  All the hard work and compromise is behind the scenes.  Its all about communication and eventually all your financial efforts could seem, well, effortless.

WandaFears, Realtor ABR CRS GRI WCR

Richmond, Va. Long and Foster Realtors




0 commentsWanda Fears • February 25 2015 08:19AM
Most Common Couple Money Mistakes, Part 2
You’ve adjusted your accounts to what works for you, you’ve agreed on a budget you both can live with and tackled the issue of earning discrepancies. You’ve put your plan into action and now that some of your financial goals have been… more
Most Common Couple Money Mistakes, Part 1
Combining your money is a big step, almost as big as tying the knot. When you marry someone, you marry their finances as well. Tied to their debt, savings (or lack thereof) you both must learn to live with each other’s financial… more
For Sale By "Overwhelmed" Home Owner
These are the days of DIY heroes and a life-hack obsessed public. Whether motivated by feeling empowered to achieve an awesome goal, or just sick and tired of the mounting costs of our disposable obsessed society, more and more people… more
4 Cheap Home Improvements For Your Home
Being a homeowner is something to be proud of and it doesn’t matter if you’re selling or not, it’s always a great idea to making home improvements whenever you get a chance to. It’s very easy to overlook that project of finishing up the… more
Get Prepared For Spring In Your New Home
First spring in your brand new home? Seeing the flower beds bloom, where the most light comes in and which windows to open to get that first warm breeze can be invigorating. It also means thawed winter snows flooding around your foundation… more
The Year Ended With A 6% Increase In Sales
2014 is over and with that, we’ve got some very valuable insight into what happened in the Real Estate Market last year. The year ended with 6% in sales over the fourth quarter in 2013, which is a pretty significant gain especially because… more
Millennials - Young Homeowners Trending
More and more young people across the country are deciding to buy. No longer satisfied with throwing their money away on rent with nothing to show, 20-somethings are taking advantage of the recovering housing market to invest. Long ago… more
Winter Blues - Tips To Make Your Home Attractive This Season
There are a lot of things that make selling your home in the Winter months more attractive than during the Spring or Summer. While it might be a hassle to move in the winter, buyers on the market between December and March need to move… more
3 Things That Could Ruin The Housing Market
I am incredibly optimistic about the housing market in Richmond and if you’ve been following my blog, you’ll know that the market keeps getting constantly better. Everything from affordable housing, great rates and even FHA insurance rates… more
I Have Seller's Anxiety
I have been a Real Estate Agent for many many years now. I have come to a point in my life where I decided I need to downsize, as I get older I realize that having a big house is not such a good idea. Between having a lot of stairs, cleaning… more