Tag Archives: money habits

Financial Compatibility Matters – Why You Can’t Be Afraid to Discuss Your Financial Situation with Your Partner

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They say that one of the number one reasons why relationships fail is due to money matters. While many do not want to believe that, I can see how this can happen. It can be stressful enough making and managing your own money. Then factor in your partner’s money habits which can either make your life more stressful or potentially easier. Let’s also forget that money does NOT buy you happiness. Sure, maybe it can make your life easier and there is more financial security but money does not buy a happy relationship. It is for this reason that it is important to recognize that being with someone who has a lot of money does not necessarily guarantee a lifetime of bliss with this person because at the end of the day, you want to find someone who you love unconditionally–with or without a big bank account. There is also a reason that there is the saying, “more money, more problems.” When someone is rich, with that comes more financial responsibilities and also the risk of mismanaging their wealth which could mean being in a ton of debt later in life. On the opposite extreme, being with someone who is a broke bum can understandably bring upon added stress to your life. It can also be an extremely sensitive subject to discuss because you do not want this person to feel even worse about their financial situation. So is it important to still talk about finances and is there a safe way to approach it appropriately?

The short answer is: YES, of course it is important to talk about money in your personal relationships! I can understand why people do not want to because you may feel that it is not your right to know but if you eventually plan to buy a home together, pay joint bills, and essentially merge your adult lives together–then having some money conversations are absolutely needed if you want to build a strong financial foundation together and to ensure you both see eye-to-eye when it comes to money. So often, you see one person who is a great saver and then someone who cannot save a dollar if their life depended on it. This can cause a lot of arguments and tension if you have two people who simply do not agree on how their money is spent. Looking at it from both points of view, does the saver want the spender to spend all their money? Does the spender want to feel deprived and that the saver is constantly controlling their money? These are things that couples really need to think about. From personal experience, I have dated people who were bad with their money and did not know how to save. Over time, it got very annoying and although that was never the definitive reason as to why I would break up the relationship, this was something that was always a consideration because I did not want to be with someone who had zero discipline when it came to saving their money and did not prioritize their financial future.

There are a few safe ways to approach the subject without necessarily bringing it up directly right away. For starters, observe your partner’s behaviors when it comes to money. Is this person very frugal when they order food from a restaurant or does this person like to order everything from the menu? What are things that this person likes to spend money on–is it a daily coffee, vacations, material goods, and/or spending categories? Does this person talk about money goals such as paying off their student debt, saving up for enough money for a house, etc.? There are many things you can observe without asking.

As time goes by within your relationship and you get to know each other better, it is okay to open up the conversation and to talk about each other’s personal finances. It is better to be open and upfront than for it to be a guessing game or to feel like you can’t talk about these things. People should not be afraid to be open and honest, even when it comes to their financial situation. It will either bring two people closer together or further apart. If it does end up being a conflict within the relationship, it is much better to know now and to break it off rather than to stay and then find out when it is too late that the two of you are not financially compatible.

3 Ways to Avoid Living Paycheck to Paycheck

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It is hard escaping news headlines that a higher percentage of people are living paycheck to paycheck, even people who have a high annual salary. There are many contributing factors that are causing this including the rate in which inflation has increased over the past year. Aside from that, when people make more money, they also tend to spend more because they feel they deserve it or that they are comfortable enough to spend more while saving at the same time. No matter how much money you are making, it is essential to make money management a top priority. This will allow for yourself to be in a better financial position in the long run and ensure that you won’t be living paycheck to paycheck. Like most things in life, it is never too late to start and develop the right habits to get you on the right financial track.

Set Up Automatic Payments Into Your Savings Account – Whatever amount you can comfortably afford, determine a set amount that will automatically get deducted once a week and then you do not touch the money. This is a quick way to build savings without really thinking about it. If you are more disciplined, you can manually put the money into your savings every week and change up the amounts as needed depending on how much extra that you have left over. Every dollar counts so any little bit that you can put towards your savings is better than nothing!

Reduce Consumption and Eliminate Non-essentials – I recently wrote about how reducing consumption is a great way to save money. This could really range from anything from using less energy/gas to eating less at a restaurant so you have a second meal to take home at a later time. There are so many ways in which you could reduce what you consume each day. It is also smart to examine your monthly subscriptions and other services/products that you currently have and then eliminate the ones that you do not really need. Do you pay for cable or a gym membership that you never use? Then this might be the time to cancel these services altogether so that you can allocate the money into your savings and/or investments.

Track Every Dollar That You Spend – If you follow my blog, you probably have read me talk about this consistently but it is important to track your expenses everyday. This helps you stay accountable with your financial decisions and can also serve as a tool for analyzing your money habits. Did you notice that you spent more money on non-essentials last month? Then you can strive to reduce your spending the following month. The only way you can truly track this is by actually taking the time to record all your expenses in order to stay focused both on spending less while maximizing your daily savings. If you can do both of these things at the same time then you will find that you will not be living paycheck to paycheck anymore.

3 Ways to Build Wealth Through Your Mindset

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Whether you want to believe it or not, your MINDSET is your strongest asset in helping you manifest your desires and reach all your lifetime goals. For many people, building wealth is on the top of the list but many people do not know where to start. Time and time again, as I just pointed out from the very beginning–it all begins with your mindset. It is your choice in how you develop your thoughts, so why not think with intention and develop a stronger mindset? The good thing is, it is never too late to develop a positive mindset in regards to how you view money and navigate your financial future.

Believe in Your Money Making Potential – For me personally, making money has always come very easily. Mind you, I have always worked very hard to ensure that I make enough money to be financially independent while also saving for my future. My earning potential has always been abundant not solely due to my deep desire to build wealth but also because I strongly believe that I have the capacity to generate a ton of money. This belief propels me to take the action that is needed to manifest and make it happen. I don’t sit around and wait for the money to fall from the sky because I recognize that the process does not work that way. Maybe for some people, they are not in a position where they need to work or they have someone who can totally provide for them. While this might appear nice on the surface, it goes against my core belief that I am a money making machine. Hence I have never been one to rely on others for money and have always found ways to make a good living where I have enough money for daily expenses and where I can still put money aside for the future. This goes to show that anyone can do it given they have the right mindset.

Understand that Building Wealth Is a Gradual Process – Everyone is looking for a get rich quick money strategy or wants to be rich right now but realistically, most people who have accumulated a substantial amount of wealth will tell you that it was not an overnight process. It is more about how consistent you are with your money habits and setting long term goals which will ultimately lead to a good amount of money. Besides saving money, it is important to invest your money so that it continues to grow and accumulate over time. It is okay if you are starting small or with essentially nothing, as long as you stay on a good path to wealth with the mindset that you are going to continue to keep building wealth throughout your lifetime by your everyday money habits.

Be Willing to Make Sacrifices for the Greater Good of Your Financial Future – I recognize that saving and investing money might not be as exciting as spending it right now but it is ESSENTIAL to get into the habit of holding onto more money than you are taking home. This is a necessity not only for building long term wealth but this habit will allow for you to become financially stable and prevent you from taking on any unnecessary debts. There will always be temptations in your life from having the fanciest car to having designer clothes to wanting to eat at the nicest restaurants or whatever you want to spend your hard earned money on to provide you instant gratification but you need to shift your mindset to believe that you don’t need these things and prioritize your future above anything else while just focusing on your basic necessities as much as you can. That is not to say that you are not allowed to treat yourself from time to time but rather to not let instant gratification be the driving force of your spending decisions. It is better to make financial sacrifices now for the greater good of your abundant future that lies ahead.