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3 reasons your spouse must play an active role in all financial investment decisions
From stressed to blessed
Financial planning is a personal task. It requires intimate knowledge of one’s income, debts, and spending habits—probably the reason most people handle their finances solo.
But the connection between your finances and the lifestyle you want grows complex with time. Factors like maintaining a work-life balance and fulfilling family commitments can play an important role when deciding where to invest. You may find that the more you rely on your judgment, the harder it becomes to make those complex decisions.
That’s where your spouse comes in. Here are three reasons your life partner must play an active role in all your financial decisions.
#1 - Leverage the power of combined financial goals
Most husbands and wives have different ideas about financial investing. That is why most couples avoid having a clear conversation about setting common financial goals. Perhaps they want to avoid a potential conflict.
But the longer you wait, the more difficult it becomes to solve your differences. In fact, talking about shared goals is a terrific way to iron out big issues before they happen.
- What does each of you want out of retirement?
- Are you hoping to stay in the same city, or does one of you want to move back to your hometown?
- Do you want to travel or buy a vacation home?
It is important to have straightforward answers to such questions. That is the only way to find common ground and come up with long-lasting solutions, or at least some understanding of what needs to be done.
Once you decide on shared goals as a couple, it will be much easier to devise a financial investment plan that works for both. And working towards a common goal will also bring couples closer together and provide a sense of purpose and direction—powerful leverage to have.
#2 - Assign time frames and remain 100% prepared
By defining your combined goals and the time frame in which you hope to achieve them, you can progress fast.
- The long-term financial goals you plan to achieve more than ten years down the road are typically those that take retirement into account. For many people, these goals might include investing in real estate, which has the best potential for easy cash flow and gradual asset growth.
- Mid-term goals are usually those you wish to accomplish in 3 to 10 years (e.g. diversifying the investment portfolio to multiple avenues.)
- Short-term financial goals are ones you expect to reach in one to three years. These might include creating an emergency fund or taking adequate insurance to face the unexpected.
Thinking in terms of timeframes will help you relax. You can enjoy every milestone (e.g. buying your first home, taking a dream vacation or starting a family.) And if an unexpected expense comes up, you’ll know how to handle it without putting a strain on you. It will be like another bump in the road that won’t affect any long-term goals.
#3 - Strike the critical ‘investment-life’ balance
When managing finances together, the key is establishing a healthy ‘investment-life balance’ (just like work-life balance.) It comes down to balancing financial investments and still enjoying your life in the present.
A salary raise may tempt you to spend all your income on weekends and nights out with friends. But, if you do not invest in your future, you may struggle to pay bills or save for retirement later. Similarly, if you focus all of your energy on saving for retirement, you may find yourself feeling stressed and unhappy in the present. Ideally, a middle ground must give you peace of mind and a sense of enjoyment.
This can be a delicate process—another reason it is never too early to discuss finances with your spouse. That is the only way to ensure being on the same page and maintain the critical ‘investment-life’ balance as a family.
Financial harmony = marital bliss
Carefully laid-out plans can be derailed by layoffs, unplanned pregnancies, and complicated health issues. Such challenges can often create significant emotional stress. An ‘involved spouse’ can provide the necessary support to weather these big storms and get back on track. And since both agree on risk tolerance and return expectations, couples can avoid arguments about money and have a shared goal to work towards.
Making major life decisions will always be tough, especially as a couple. The good thing is you can always rely on experts to assess your specific situation and make investment recommendations—so you can enjoy your life without worrying about what will happen in the near and long term.
Ultimately, the goal is to live a fulfilling life, not just save as much money as possible. And with the proper guidance, you can reach your goals, even before retirement. Contact our experts for a step-by-step blueprint to investing in assets that support your dreams and do not limit your cash flow.
Disclaimer: This article is not financial advice. The circumstances of individuals may differ, and you must get financial advice where necessary. What follows here is our personal, subjective, biased opinion. It’s based on simple strategies that have helped us and our clients earn great income over the years.
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