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Money Girl

232 MG 5 Smart Money Tips for Couples

How to end money conflicts in your relationship for good.

Broadcast on:
24 Aug 2011
Audio Format:
other

How to end money conflicts in your relationship for good.

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One of the biggest challenges in personal finance can be managing money with your spouse or partner. If you don't agree on money basics, like budgeting, spending, and saving, that can cause serious problems in your relationship. But don't worry. If you're fighting about money or don't think you can ever see eye to eye, there are ways to settle your differences. I interviewed Bethany and Scott Palmer, the authors of First Comes Love, Then Comes Money, to learn more about specific techniques that couples can use to improve their financial lives. At the end of the show, I'll tell you where to go to listen to my entire interview with these money and relationship experts. In this podcast, I'm going to give you five tips for managing money that can dramatically improve your relationship. Tip number one, know your money personality. Understanding your money personality is the key to ending conflicts about finances in your relationship for good. Your money personality is the distinct way that you think about and handle money. See if you recognize yourself in one of the following five money personalities. The Saver likes to pinch pennies, hates parting with money, and thinks everything is overpriced. This type likes to research purchases and rarely spends impulsively. Savers are organized and trustworthy with money. The Spender loves to buy for themselves and perhaps for other people as well and gets a thrill from making a purchase, even if it's something inexpensive at a thrift store. Spenders live in the moment, buy on impulse, and don't differentiate between wants and needs. The risk taker gets excited about possibilities and is willing to lose money for the potential financial return of an investment or business opportunity. This personality type thinks conceptually and doesn't get hung up on the details. Risk takers can be impatient and make decisions without consulting others. The security seeker likes to plan for the future so they never have to experience a financial crisis. They're willing to sacrifice today so they can save, invest, and have adequate insurance to cover their needs tomorrow. Security seekers are very conservative with money and are never caught unprepared. And the flyer flies by the seat of their pants because they don't like to think about money at all. They're not motivated by money, rarely make financial plans, and are unorganized. Flyers may end up making financial decisions based on fear rather than good advice. Each person typically has two of the five money personalities, a primary and a secondary. To get clarity about your money dynamic as a couple, you should identify your own and your partner's money personalities. Tip number two, have a money huddle. A money huddle is a regular meeting you should have with your partner where you talk openly about your money relationship. This is the time to discuss how to blend your money personalities into a system that satisfies both of you. You might have a 45-minute money huddle once a month over dinner, for instance. The purpose of a money huddle is not to crunch your budget numbers or to let tempers flare. It's to acknowledge your money personalities, discuss how you relate to money, and decide how to move forward as a couple. You should begin your financial conversation with the end in mind, which is an acronym for how to structure your money huddle. E stands for evaluate, and for needs, D for dream. What makes the carnival curls fun? That's up to you. Maybe it's a ride on both our rollercoaster at sea, or a deep tissue massage at the spa, Creole inspired cuisine at Emeralds Bistro to laid back bites at Guy's Burger Joint, excursions that take you from jungle adventures to beach days at Mahogany Bay, and sunsets from the top deck. Long story short, no one does fun like carnival. Carnival, choose fun. Choose registry Bahamas Panama. Calling all future shapers and dream chasers, MSU Denver is a place that meets your pace. We have drive and dedication to help you reach your destination. We're a school that works for you and with you at every step. Online and on campus, learn with faculty and peers to forge a career. Tomorrow can't wait. Your next starts now. We are the changemakers. MSU Denver. This is an ad from BetterHelp. Unfortunately, we don't get an owner's manual for ourselves. There are no simple instructions for what to do when we feel down, or when we have relationship problems or family conflicts. That's when therapy can help, and BetterHelp is a convenient way to get started. It's 100% online, flexible, and surprisingly affordable. Connect with a licensed therapist by phone, video, or online chat at a time that works for you. Visit BetterHelp.com to learn more. That's BetterHELP.com. Tip #3 Evaluate your financial situation. You should spend the first 15 minutes of your money huddle evaluating your debt and savings. Quickly review each of the debts you have, such as credit cards, mortgages, and auto loans. Know the balance due on each debt and the interest rate you're paying. Next, review how much you have in savings and investments, like retirement accounts, brokerage accounts, and bank accounts. Remember, this is just an overview, so don't let it consume your entire discussion. Tip #4 Discuss your money needs. The next 15 minutes of your money huddle should be spent discussing one of your most pressing money needs. You might want to say for a vacation, increase contributions to a retirement account, purchase life insurance, or buy a new toy. Listen to what your partner has to say, and set a date for when you could research both of your items, take action, and meet your money needs. Tip #5 Remember your dreams. Take the last part of your money huddle to remember the dreams you and your partner had earlier in your relationship. Think about what you really want your future to look like. Do you want to buy a home? Have a cushy retirement account? Move, start a business. Whatever it is, starting a dialogue about it is the first step to making it happen. So here's what we've covered. #1 Know your money personality. #2 Have a money huddle with the end in mind. #3 The E and N stands for Evaluate your situation. #4 The N stands for Discuss your money needs. And #5 D stands for Remember your dreams. Knowing your money personalities and having regular money huddles that begin with the end in mind is key to successfully managing money as a couple. I'm making my full interview with money and relationship experts Bethany and Scott Palmer available for download at smartmoves2growrich.com. If you're having money problems or just want to know how to avoid them, be sure to listen. The advice is invaluable. And we also answer two questions that I recently received from podcast listeners who have serious money dilemmas and their relationships. To listen or download the audio interview, just go to smartmoves2growrich.com. And while you're there, you can also download two free chapters from my book. If you like the tips you get in the Money Girl podcast, you'll love Money Girl's Smart Moves to Grow Rich. It tells you what you need to know about money without bogging you down with what you don't. It's available at your favorite bookstore in print or as an e-book for your Kindle, Nook, iPad, PC, Mac or Smartphone. On the Money Girl page at quickandertietips.com, you'll find more ways to learn about money and connect with me. Like the free Money Girl newsletter, my social media pages, and where to email your money question. I'm glad you're listening. Cha-ching. That's all for now. Courtesy of Money Girl, your guide to our richer life. [BLANK_AUDIO]