Remember the old nursery rhyme that begins, "Jack Sprat could eat no fat, his wife could eat no lean"? It’s kind of the same situation when you and your partner have different attitudes toward money and investing.
It’s no secret that finances often are a major source of disagreement between couples. If your saving and spending philosophies are different, coming up with a financial strategy that you are both comfortable with may be quite a challenge.
Talk About It
Just like nursery rhymes, attitudes toward spending and saving usually are learned during
childhood. Your families’ relationships with money may have a lot to do with how you and your partner handle your own finances. Discussing financial issues early in your relationship is a good way to prevent stress and friction later on.
Strive for Balance
If one of you wants to invest every penny while the other wants to spend any extra money you have, you’re going to need to compromise. Choose a realistic amount to invest toward your financial goals, but set aside some money to spend on yourselves as well. The "saver" can feel confident about having an investment plan in place. And the "spender" may be more willing to stick with a savings plan that doesn’t leave him or her feeling deprived.
Reconcile Risk
When one of you is an aggressive investor with a high tolerance for risk and the other is a conservative investor who wants to preserve principal at all costs, you and your partner may have a difficult time choosing investments that are acceptable to both of you. If you share a single investment portfolio, consider asking your financial professional to help you work out an investment plan you both can live with.
If you can’t reach a compromise, you and your partner may want to consider separate investment portfolios. That way, each partner can work with his or her financial professional to build a diversified portfolio based on personal preference and risk tolerance.
No matter how different your saving and spending philosophies are, your objective should be to design a shared financial plan that will help you reach your goals.
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