Did Valentine’s Day Not Go as Expected for You?
Love is in the air... Did Valentine’s Day not go as expected for you? Let me guess… You got her a dozen roses, a box of chocolates, and a big stuffed teddy bear, all on your credit card that you have no intention of paying off any time soon.
Well, guess what? The roses die, the chocolates get eaten and digested, and the teddy bear gets thrown in a closet… (not to mention if you put it on credit... that lasts longer sometimes than the roses). Plus, that’s some high school stuff right there. Believe me, I would know. I’ve taught high school for the past decade, and I finally vowed to take February 14th off every year for the rest of my career. High schoolers are the worst. They’re running around, making out in between periods and showing off their roses and huge stuffed animals while sharing their chocolates with their BFFs.
You could do better than that. Maybe you should prove that you’re actually thinking about the future with her.
Did you know that a large percentage of relationships end because of financial stress? In fact, it is the second leading cause of divorce behind infidelity. If you want your marriage and love to last, then you shouldn’t only be focused on the present. For Valentine’s Day, showing love in other ways may be a lasting strategy.
Although it may not sound romantic, you could add to your gifts and undying love by making a contribution to her Roth IRA. Or if you have kids, contribute to that 529 plan. In any case, a serious conversation has to occur, and you need to be in agreement with your goals for the future.
It’s probably one of the hardest conversations you’ll ever have, and it often seems taboo, but getting on the same page now can help avoid financial stress that builds up and boils over. Do you know where her paycheck goes? Does she know where yours does? How much debt do each of you have? Do you have a plan to get out of it?
It’s time to sit down and go over your finances together. If you’re not ready to share all the details, start with these questions:
Get the conversation going:
How do you think couples should manage their finances?
How do you talk about credit management?
What are your short-term financial goals?
What are your long-term financial goals?
Then agree on a vision for your future:
What are our action items to achieve our financial goals?
How much money are we willing to allocate each month to paying off debt?
Are there any non-essential expenses we could eliminate?
If we have a monthly surplus, where should that money go? (e.g., retirement, debt repayment, college fund, travel fund, etc.)
Set a few ground rules going forward:
If an item costs more than $500 (or another agreed-upon threshold), discuss it before buying.
Revisit your financial progress every six months.
When a major life event occurs, revisit your financial plan together.
And of course, make an appointment with a NEST Financial Planner to help fast-track your goals.
Life is beautiful when you have someone to share it with. Don’t become a statistic. Have the money talk now so next year you can celebrate a financial milestone instead of splurging on fleeting gifts.
This article is brought to you in part by the wizard behind the scenes with 23 years of experience, Dan Dillard. Of course, with his workshop of helpers including some handy hi-tech sourcing.
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DISCLAIMER: We are legally obligated to remind you that the information and opinions shared in this article are for educational purposes only. These are not financial planning or investment advice. For guidance about your unique goals, drop us a line at info@nestfinancial.net.