Frequent readers of our blog will know that we’ve been working through Adriane Berg‘s Your Wealth Building Years. Berg is a long time writer on personal finance with a special focus on how financial needs change over the lifespan. She has some interesting thoughts on couples which are worth sharing:

1) Balance is Important: In Berg’s observations two income couples are becoming the norm. Very often in these types of relationships, one person makes more than the other. Because of this, the person who is perceived as breadwinner will usually prevail when a disagreement arises. This can cause resentment.

2) Compromise: Berg feels the way around this is compromise. Where couples are imbalanced financially, a good way out of the problem is the following: first know your own reasons for your money making decisions and second, listening to your partner’s reasons. Finally, the decision about what to do should be based on what’s more sensible and how to minimize the losses, both financial and personal to the relationship. Ultimately, Berg says you’ll have to prioritize, negotiate and reach a compromise to get around the fundamental imbalance.

Food for thought, we hope you won’t have to do this very often.

Best,

James & Miel

Check out Adriane Berg at Powells.com

MANAGE YOUR MONEY TOGETHER

Here are some simple guidelines for DINKS to build wealth:

1) Collaborate: Meet regularly to talk about money, set goals together, track and monitor them.

2) Understand and respect your partner. Take time to understand your partners values about money.

3) Watch the numbers. Get a budget, monitor your spending and track your net worth.

4) Max your retirement. Maximize contributions to your tax deferred retirement accounts.

5) Invest in stock. Stocks perform better than bonds or cash.

6) Avoid high interest debt. Credit cards and title loans are financial cancer.

7) Diversify. Don't put all your eggs in one basket.

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