Its no secret that the divorce rate of America’s millionaires is quite low. Since it takes time to accumulate a million dollars, it seems fair to say that there is something special about couples that have managed to reach that level of wealth. Some of this success can be attributed to things like marriages tax advantaged status or economies of scale. Some authors like Thomas Stanley of Millionaire Next Door fame have also looked at the personalities and values of millionaires.

But, what this discussion leaves out, is the fact that marriage is a partnership between two people. So, this means the financial success of the marriage is partly due to the quality of interactions the two people have with each other. This obviously pertains to finance because if the quality of ones discussions are bad, then the teamwork that’s required to build wealth doesn’t happen.

So, Deborah Knuckey (previously featured on the DINKs) offers some good tips for improving the financial harmony in your marriage.

1. Treat money and each other with respect.

2. Know what your individual and shared goals are, and what it takes to achieve them.

3. Develop a plan and follow it.

4. Understand how to meet your goals through smart spending and investing.

5. Protect each other by putting together a strong financial safety net.

6. Communicate when concerns arise and work together to find acceptable solutions.

7. Get outside help as required.

The bottom line is that building wealth is greatly facilitated by having a harmonious marriage. The tone and quality of your discussions matter a lot in this process. If you’ve got questions about specifically how to get started on these points, feel free to drop us an email. We’re available at dinksfinanceblog @ yahoo.com.

Best,

James

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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