Among couples, it is not unusual for one half , to shoulder all the responsibilities related to financial planning.
Here’s one helpful piece of financial advice for couples: Both of you should be involved. Why? Here are a few compelling reasons.
Almost all couples dream of the day when they can say that they have attained true financial independence. Now, the decisions you both make can either move you forward and closer to that goal or set you back. Most of the decisions that need to be made are not easy. And as the old adage goes, two heads are better than one. Plus, if both of you work together, potential misunderstandings related to your fiscal health can be minimized, if not totally eliminated.
Another key reason why couples should shoulder financial responsibilities equally is that both of you will need to make some sacrifices somewhere. Perhaps you will need to limit your spending on leisure and other non-essential things. Here, it is crucial for both partners to be onboard and to devote the same level of commitment. Otherwise, there will be one partner who will be undermining the efforts of the other.
Financial planning and investing requires discipline and objectivity. One partner may feel overwhelmed by the things that he or she has to process, which can sometimes lead to lost opportunities. For example, when stocks begin to plunge, one spouse may feel fearful and anxious. Without the other spouse seeing opportunity in this situation, potential profits can be lost.
Finally, there’s the fact that one of you will inevitably pass away before the other partner does. In most cases, it’s the women who outlive their husbands. When that happens, you wouldn’t want your partner to be preyed upon by unscrupulous financial advisers who can steer them toward dubious financial decisions. Also, the other spouse needs to know everything about your finances, from the passwords of online accounts to your financial health.
As partners in every facet of the word, personally and financially, it your duty to educate yourselves and treat each other as equals. In other aspects of your married life, you might divide tasks and responsibilities based on the skill and interest of each partner. But when it comes to investments and financial planning, both of you should share the responsibilities equally since both of you will be affected by the decisions made, whether these decisions are made by one partner or by the both of you.