4 Key Money Moves Financially Savvy Couples Make
Financially savvy couples use 4 key money moves to stay organized, on track, and harmonious. They leverage today's tools and technology so they can feel confident and excited about the future.
Save and Invest
Financially savvy couples are tuned in to the war that's raging for their wallet. They take responsibility and claim their financial independence from the marketing messages that bombard them by looking at their money in both present and future values. They understand need vs. want and ask, "Do I need this, or do I just really want it?" before spending.
> Make a budget and live by it.
> Save at least 15% of every paycheck.
> Invest prudently for your risk tolerance profile.
> Pay off credit cards every month.
>Take advantage of employer 401(k) matching plans.
Keep accurate records of your entire financial picture so you can solve problems, answer questions, and realize what money moves make the most sense for you today and in the future. The tools and technology we use for our clients allows them to keep all of their accounts and documents in one secure location, accessible 24/7 from anywhere. They can see how investment and spending decisions today can affect lifetime cash flow, shape retirement, and influence their financial goals.
Communicate Clearly and Often
Financially savvy couples embrace learning together. They know that no one has all the answers and there is always something new to ask questions about and consider.
As a team, you can work together to achieve your goals and get what you want. However, you can’t do this successfully if you don’t speak up, share your ideas, and understand what your partner thinks. Always be honest, remain open, and don’t bottle up negative feelings.
Set up a framework to ensure you hear each other's thoughts and ideas on a regular basis. Make a monthly “money date” with your partner and review your finances. Look at your budget, bank and credit card accounts, bills, and retirement. Discuss ways to correct any mistakes from last month, or reign in runaway spending for the upcoming month. Then, brainstorm ways you might improve your current actions. Make it fun and don't forget to talk about your goals, hopes, and dreams so you continue to feel motivated and inspired to work toward them.
Many times partners aren’t on the same page about everything. Each person’s wishes and goals are valid, and couples who work together to brainstorm solutions that speak to each of their needs are happier.
Hope for the Best. Plan for the Worst
No one wants to think about what can go wrong. Financially savvy couples always act to protect themselves in worst-case scenarios:
> Create an emergency fund, or liquid savings account with enough cash to cover expenses for 3-6 months.
> Evaluate your needs and be sure to get the proper insurance coverage on your life, health, home, and auto.
> Establish an estate plan and review it yearly.
Well-informed couples who diligently save more, spend wisely, and invest to grow and preserve wealth set themselves up for success.
Hammond Iles Wealth Advisors is an independent, national investment management firm providing unbiased financial advice and personalized wealth management. The safe, secure online Hammond Iles Virtual Vault allows you to see your entire financial picture and important documents 24/7 from anywhere. Learn how it works below, email firstname.lastname@example.org, or call (800) 416-1655 TODAY.
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