When should you look through your significant other’s wallet or purse? Before you walk down the aisle.

Okay: good relationships aren’t formed on snooping through your partner’s personal property (particularly early on!). But, if you’re seriously committed and ready for the next step, the next step isn’t always marriage but determining if your long-range financial goals are in sync.

Says The New York Times:

Marrying a person who shares your attitudes about money might just be the smartest financial decision you will ever make. In fact, when it comes to finances, your marriage is likely to be your most valuable asset — or your largest liability.

Read the article here.

So how do you know if you share the same outlook as your honey about money?

Love may be an imprecise calculation. Determining your fiscal compatibility is not. Here are five issues to discuss before committing to “for richer or poorer”:

1. Do You Share Similar Spending Habits? If you do not, you can work around this issue. But, it will be easier for the long haul if you share a commitment to a certain sort of spending. It doesn’t matter if you both enjoy a frugal lifestyle, or one that places importance on value over price. Sharing a similar outlook is a big deal.

2. Have You Been Honest About Your Debts? No one likes a nasty surprise. Make that double after they’re part of a legal structure that comes calling if you don’t pay up. A new spouse should not be expected to pay for debt incurred prior to the relationship. Be honest.

3. Do You Agree on Saving and Investing? Again: you don’t need to see eye-to-eye all the time. Few couples do when it comes to money matters. The important thing here is: can you openly discuss differing approaches and come to a jointly-made decisions on your financial priorities? (See #4).

4. Can You Discuss Money Without Disrespecting Each Other? If an argument arises, do both parties “play fair”? Heated money discussions can include conflicts over other major life choices. Can you have a civil disagreement?

5. Do You Agree on Major Life Choices? Where will you live? Work? Will you have kids? Will you send them to private school or college? Do you share similar, specific values? Have you talked about what it will be like when you’re old (and are you preparing for that day)?

Finding a partner that shares similar financial goals will make your life (and your marriage) a lot easier.

Related:

Prenup Agreement…Is It For You?
Postnuptial Agreement
Would You Marry for Health Insurance?
Say ‘I Don’t’ to a Wedding Loan

Further Reading

• Blogger Focus : Living Almost Large (1)
• The ABC’s of Budgeting and Finance : K – O (0)
• The ABC’s of Budgeting and Finance : F – J (0)
• 5 Considerations When Opening Your 401(k) (0)
• The ABC’s of Budgeting and Finance : A-E (1)

Tags: Marriage, money, Personal finance, relationships

This entry was posted on Friday, September 12th, 2008 at 10:01 am and is filed under Budget. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.