| "> | | | | The key words are actually follow. I've seen too many |
| I think you'll agree that couples can have problems | | | | couples who bought a plan and then put it on the shelf, |
| when it comes to talking about money, and that the | | | | never to look at it again. You'll need to work together |
| four 'problems' we talked about in Part 1 of this article | | | | to set goals that complement your wants (a financial |
| can interfere with that dream of happily ever after: 1) | | | | plan has to be developed before it can be followed |
| Unrealistic expectations; 2) Fighting about money; 3) | | | | and monitored). |
| Thoughtless action or inaction; and 4) Men and women | | | | I know this my sound obvious, yet very few people |
| handle stress differently. And there's another one (as if | | | | are willing to spend the time it takes to make a plan. |
| these four aren't enough): People have different | | | | What you'll want is a plan that reflects your dreams, |
| money personalities, and chances are good you've | | | | and then you'll have to act to put the plan to work. The |
| partnered with someone who thinks differently about | | | | plan should include your goals, a list of all your |
| money than the way you do. | | | | accounts, a section that shows your monthly income, a |
| Take a test with me right now. Read the following | | | | section that shows your monthly expenses and a |
| three categories and choose the one that describes | | | | section that shows your current investments. |
| you best, and then the one that best describes your | | | | |
| partner: | | | | 2) Share Responsibilities. You must work as a team to |
| Are you more of the Top Ramen or filet mignon type | | | | get what you want. It is critical that you both become |
| of spender? A Top Ramen spender controls his or her | | | | involved and keep aware of what is happening with |
| spending. A filet mignon spender acts as if he or she is | | | | your wealth. |
| sure to get hit by a bus tomorrow, so they better | | | | Be certain that both of you can clearly articulate your |
| spend everything they have and then a bit more. | | | | partnership's assets and debts, and that you both |
| If you're living way beyond your means and have | | | | know how to locate back-up documentation. Sharing |
| credit card debt, then you are closer to the filet mignon | | | | responsibility means that one partner may manage the |
| type of spender. If you are a saver and live within your | | | | short-term goals, long-term goals and investments |
| means, then you're closer to the Top Ramen lifestyle. | | | | while the other is managing the income, expenses and |
| The next category is about risk tolerance. Are you the | | | | account balances. Teamwork builds intimacy. |
| roulette wheel investor or are you more likely to be the | | | | 3) Monitor Your Money. This may be the most |
| tic-tac-toe investor? How do you feel when you | | | | overlooked step. Once you have a financial plan and |
| invest? Does investing get you excited and make you | | | | are sharing the responsibilities, you will then want to |
| want to learn day trading? | | | | monitor your wealth every month. |
| If it does, then you are closer to being a roulette wheel | | | | |
| investor. If, however, your investing approach is to put | | | | Yes, you read that correctly. Every month. For 60 |
| money in a CD or cash, then you're closer to being a | | | | minutes you will sit down with your partner and take a |
| tic-tac-toe investor. Neither extreme is good for your | | | | look at what your wealth has done for that month. |
| wealth. | | | | You'll start to notice that if you can monitor your |
| This last category is about being a team player or a | | | | wealth, then you can grow it, and grow it more |
| captain. Are you a team player, like in doubles tennis, or | | | | effectively. Monitor what you save, what you spend |
| do you like to solve problems on your own, the way a | | | | and what you grow. |
| captain would? If you like to solve problems on your | | | | 4) Get a Third Party Advocate. Danger! Do not try this |
| own, and have low interest in consensus building, then | | | | on your own. As you already know (or maybe you |
| you are probably closer to being a captain. | | | | don't), money conversations are charged with energy. |
| If you like to build consensus and work as a team to | | | | You'll want to bring in a third party advocate who can |
| solve problems, then you are more likely to be a | | | | support and guide you in getting what you want. That |
| doubles tennis player. I find that the couples who thrive | | | | person, at a minimum, should be a Certified Financial |
| in regard to their wealth management work as double | | | | Planner® who has worked successfully with |
| tennis players, and not as two captains or a captain | | | | couples in their money management. It will be worth |
| and a mate. | | | | your investment to get that third party expert to work |
| At this point I'm hoping that you're asking yourself what | | | | with the two of you to build a plan. |
| you can do to improve the way you and your partner | | | | The process of building the plan that matches your |
| interact so that you can grow your money. You have | | | | and your partner's dreams can be an exciting and, |
| many choices, and I have found that the four steps | | | | actually, a relationship building experience. Enjoy. |
| below work extremely well. | | | | RC Peck, CFP® |
| Four Solutions for Improving Wealth Management | | | | Founder of FearlessWealth |
| Team Work | | | | RC Peck has been working with couples and money |
| | | | for over a decade with remarkable results. |
| 1) Develop a Financial Plan that you will actually follow. | | | | |