I recently read the book Smart Couple Finish Rich and really enjoyed it. Since there were so many interesting ideas in the book that I agreed & disagreed with, I thought I would cover the book one chapter at a time (yeah, I like stretching things out).
The basic premise of the first chapter is that couples have to work together on their finances. They should plan together and both of them should know all the relevant financial details ie bank accounts, insurance policies investments etc.
In order to achieve their goals a couple must be able to agree on financial goals to achieve, and be able to work together on saving, investing and spending.
I couldn’t agree more with this bit of advice. I think it’s pretty common for couples to separate their “family duties” and responsibility for looking after the money often falls onto the spouse who is more interested (or less disinterested) in that topic. Canadian Capitalist talks about some solutions for the problem of the spouse who looks after the finances dying and the other spouse having to take over. One of the more interesting suggestions was for the “financial” spouse to give a regular power-point presentation to the other spouse.
My wife and I were both into finances before we met and although I do more of the investment stuff, we both know what’s going on in our finances. We are currently working on a list of all our financial assets/ accounts / passwords etc that we will keep somewhere so if one of us passes away the other can take over. In the event that both of us die, our executor will have a copy of this information as well.
Do you have a partnership where the finances are shared? Or is one partner the main “financier”?