The word retirement conjures up a lot of different feelings – some spouses are scared and some have a true sense of excitement when they talk about it. Your money relationship touches every part of your life together and that’s especially true when it comes to planning for retirement. [Read more…]
Whether you’re 25 or 55, it’s not too early – or too late – to think about your retirement. If you want a retirement filled with fun, travel, or just some peace and quite, you need to start planning. Now. Planning for retirement demands healthy financial communication. Financial communication is at the core of your financial relationship – Your financial relationship is the way you, as a couple, make decisions where money is involved. Your financial relationship touches every part of your life together and that’s especially true when it comes to planning for retirement.* Your plans will likely involve some changes in how you save and spend money, as well as some solid conversations about what you want your future to look like. By developing stronger financial communication skills, the two of you can tackle those changes and conversations as true partners. Here are three keys to talking about retirement as a couple:
Essential #1:What you choose to talk about TODAY directly impacts your future together.
Essential #2:Remember that we all view retirement through a different lens.
Essential #3: Think of retirement as a moving target.
We know lots of couples where one partner has a Risk Taker Money Personality and the other has a Security Seeker Money Personality. When they work together, these couples can play off of each others’ strengths to build a strong investment portfolio. This combination can lead to both a happy present and a secure future.
Read the entire Money Couple Minute on Individual Investments and learn more about how individual Money Personalities can work to your advantage in your relationship.
Financial decisions are rarely all-or-nothing prospects. If you’ve been investing in your retirement or a college fund, there’s no reason why you can’t pull back for a few months while you ride out the downturn. However, make sure you’re taking advantage of any matching programs offered by your employer whenever possible. Read the entire Money Couple Minute regarding investing vs. cash in hand to find out more tips to help you determine whether investments or cash in hand makes the most sense for your relationship and goals.
They can’t. If couples could create budgets and stick to them, we wouldn’t need to create these resources. But over and over, we work with couples who have great intentions and beautiful budgets who are falling apart financially. That’s because budgets only work when both partners are fully committed to creating them and using them as a map toward their financial future.
The couples with the best financial communication are those who create realistic budgets together. They sit down, they agree to honor what they create, then they talk about what’s important to them, what they want to save for, what they want to invest in. They look at what they earn and what they spend. They talk about how to adjust one in light of the other. They listen to each other and compromise to come up with a budget that works for both of them.
If you want a budget that works, plan a date where you and your partner can lay out all of your finances—in First Comes Love, Then Comes Money, we call this a Money Huddle. Take an honest look at what you earn and what you spend. Then set some financial goals for the next 3 months, the next 6 months, and the next year. Create a budget that helps you reach those goals and meet at least once a month to check in on your progress.
Working together, having mutual buy-in on the budget, and keeping the lines of communication open are the keys to making a budget work.