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9 Money Habits Happy Couples Have

9 Money Habits Happy Couples Have

It has become general knowledge that half the marriages in North American end in divorce. It makes us all wonder what it takes to have a happy long-term relationship.

There is good news. According to Kansas State University researcher, Sonya Britt, arguing about money is the top predictor of divorce. How is that good news? Well, if you master your personal finances and get on the same page with your partner about your shared finances, then you’ll have overcome the number one obstacle in relationships.

What do happy couples do differently? Here are the nine smart money habits they share:

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1. They talk about money

For many couples, it’s easier to talk about sex than to talk about money. Based on their upbringing, money can be a sensitive topic because it can trigger feelings of inadequacy or shame centered around not having a financial plan, around spending too much or around not earning or saving enough. Happy couples set aside time to talk about money and set goals around each partner’s and the shared money.

2. They understand each other’s money type

Are they hoarders when it comes to money? Are they big spenders? Are they come-what-may hippies? Or are they avid spreadsheet crunchers? According to author Jordan Goodman, in the book Master Your Money Type, there are six psychological money types. Happy couples understand their own money type and their partner’s. They don’t try to change the other person. They only strive to find a middle ground.

3. They have a joint bank account

Happy couples share a joint bank account that covers common basic necessities, such as rent or mortgage payments, utilities, groceries, toiletries, etc. They both automate their monthly contributions to this join bank account, in proportion to their income. They even align what to do if or when one of them isn’t earning an income.

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4. They have separate bank accounts

In addition to a joint bank account, they each have their own separate bank accounts and credit cards. Happy couples know the value of independence, freedom of choice, mutual trust and personal respect. They don’t stalk each other’s every move and purchase. Separate bank accounts also leaves room for personal growth, personal responsibility and surprise birthday gifts!

5. They understand each other’s love languages

What does love have to do with money? According to Dr Gary Chapman, in his New York Times bestselling The Five Languages of Love, people express love through quality time, physical touch, acts of service, words of affirmation, or gifts. For example, if one partner spends a lot of money buying gifts to show affection while another just wants to talk long walks together, then the first can be perceived as a frivolous spender and the second as a cheap-ass. Understanding each other’s love language helps happy couples understand their partner’s internal motivator for spending, saving, and investing money.

6. They have a security blanket

Nothing stresses a relationship more than financial insecurity. On Maslow’s hierarchy of needs, security – including financial security – is more important than love and belonging. Happy couples budget, follow their budget and create a financial security blanket that keeps them feeling secure, optimistic, and carefree. It doesn’t mean they deprive themselves of fun or material goods, it simply means they don’t spend money that they don’t have.

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7. They know that money is a means, not an end

Happy couples understand that money is a means, a way to exchange goods and services. They know that ultimately, money won’t give them fulfillment and purpose. They use money to acquire assets, to travel and experience the world, and to support continued learning and healthy lifestyle. Happy couples aren’t materialistic. They don’t feel the need to keep up with the Jones.

8. They set aside fun money

All wealth mastery gurus point to delayed gratification as a key to long-term wealth. Yet, happy couples set aside fun money, an amount of disposable income that requires no thought or consideration before spending. Tapping into the fun money barrel prevents needless arguments and stress on the relationship.

9. They have balance

They are frugal, but don’t hoard money. They are generous, but not reckless with money. They appreciate spreadsheets, but don’t let numbers rule their lives. They gracefully walk the fine line between work and play and the fine line between saving, spending, and investing.

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So, what will it be? Open and curious conversations around money or avoid money issues until they implode? Happy couples treat money as a means to an end, not a character flaw or personality trait. They approach it with a smile and look for alignment of their common goals, rather than agreement of their personal preferences.

What habits will you implement to keep your relationship happy and prosperous?

Featured photo credit: http://compfight.com via farm3.staticflickr.com

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Last Updated on January 21, 2020

How to Develop a Millionaire Mindset in 6 Simple Steps

How to Develop a Millionaire Mindset in 6 Simple Steps

We all like to dream about being financially wealthy. For most people though, it remains a dream and nothing more. Why is that?

It’s because most people don’t set their mind to achieving that goal. They might not be happy in their current situation but they’re comfortable – and comfort is one of the biggest enemies of growth.

How do you go about developing that millionaire mindset? By following these simple steps:

1. Focus On What You Want – And Take It!

So many people are too timid to admit they want something and go for it. When there is something that you want to accomplish don’t think “I could never actually do that”, think “I could do that and I WILL do that”.

Millionaires play to win, not to avoid defeat.

This doesn’t mean to have to become a selfish jerk. What it means is becoming more assertive and honest with yourself. You don’t have to grab off other people. There is a big pot of unclaimed gold in the middle of the table — why shouldn’t you be the one to claim it? You deserve it!

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2. Become Goal-Orientated

It’s almost impossible to achieve anything if you don’t set firm goals. Only lottery winners become millionaires overnight. By setting yourself attainable goals, you will get there eventually. Don’t try to get rich quickly — get rich slowly.

Let’s take the idea of making your first million dollars and expand on what kind of goals you might set to get there. Let’s also say you’re starting at a break-even position – you’re making enough to get by with a few luxuries, but nothing more.

Your goal for the first year can be having $10,000 in the bank within a year. It won’t be easy but it is doable. Next, you need to figure out the steps you need to take to achieve that goal.

Always look at ways to make growth before cutbacks. With that in mind, you might want to see if you can negotiate a pay rise with your boss, or if there’s another job out there that will pay better. You might be comfortable in your old job but remember, comfort stunts growth.

You may also have other skills outside of your workplace that you can monetize to boost your bank balance. Maybe you can design websites for people, at a fee of course, or make alterations to clothes.

If this is still not enough to make the money you need to save $10,000 in a year, then it’s time to look at cutbacks. Do you have a bunch of old junk that someone else might love? Sell it! Do you really need to spend $10 on your lunch everyday when you could make your own for a fraction of the cost?

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If you are to become a millionaire, you need to start accumulating money.

Here’re some tips to help you: How to Become Goal Oriented and Achieve More in Life

3. Don’t Spend Your Money – Invest It

The reason you need to accumulate money is for step three. Millionaires tend to be frugal people, and that’s because they know the true value of money is in investing. Being your own boss goes hand-in-hand with becoming a millionaire. You’ll want to quit your regular job at some point.

Stop working for your money and make your money work for you.

Rather than buying yourself a new iPad, that $500 could be used to invest in the stock market. Find the right shares (more on that later), and that money could easily double within a year.

There’s not just the stock market — there’s also property, and your own education.

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4. Never Stop Learning

The best thing you can invest in is yourself.

Once most people leave the education system, they think their learning days are over. Well theirs might be, but yours shouldn’t be. Successful people continually learn and adapt.

Billionaire Warren Buffet estimates that he read at least 100 books on investing before he turned twenty. Most people never read another book after they’ve left school. Who would you rather be?

Learn everything you can about how economics works, how the stocks markets work, how they trend.

Learn new skills. If you have an interest in it, learn everything you can about it. You’d be surprised at how often, seemingly useless skills, can become extremely useful in the right situation.

Start developing the habit of learning continuously: How to Create a Habit of Continuous Learning for a Better You

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5. Think Big

While I advise to start off with small goals, you absolutely should have a big goal in mind. If you have a business idea, then that is your ultimate goal – to start that business and make a success of it. If you want to invest your way to millions of dollars and do little work other than research, then that is your big goal.

There is no shame in not achieving a big goal. If you run a business and aim to make $1 million profit in a year and “only” make $200,000, then you’re still significantly ahead of most people.

Aim for the stars, if you fail you’ll still be over the moon.

6. Enjoy the Attention

To be successful, you have to be willing to promote yourself and enjoy the attention to a certain extent. Now the attention doesn’t need to be on yourself, it could be on your brand, but attention definitely attracts money.

Never be embarrassed to get your name out there. That means finding a spotlight and being brave enough to step right up underneath it.

If you run a business, try contacting the local papers. You’d be surprised at how amenable they often are to running a story about you and your business, and it’s all free publicity.

Above all, remember: You control your own destiny. Push hard enough for anything and you’ll get it.

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Featured photo credit: Austin Distel via unsplash.com

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