Lesley-Anne Scorgie - The Modern Couples Money Guide: 7 Smart Steps to Building Wealth Together

Copyright Lesley-Anne Scorgie, 2016

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Project editor: Kathryn Lane

Cover and interior design: Laura Boyle

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Epub Design: Carmen Giraudy

Back cover image: Glen Co. Photography

Library and Archives Canada Cataloguing in Publication

Scorgie, Lesley-Anne, author

The modern couples money guide : 7 smart steps to building wealth together / Lesley-Anne Scorgie.

Includes index.

Issued in print and electronic formats.

ISBN 978-1-4597-2977-3 (paperback).--ISBN 978-1-4597-2978-0 (pdf).--ISBN 978-1-4597-2979-7 (epub)

1. Couples--Finance, Personal. I. Title.

HG179.S3525 2016 332.024008655 C2015-908789-9 C2015-908790-2

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Besides infidelity, the fastest way to kill an intimate relationship whether youre straight or gay, religious or agnostic, married or cohabitating is to not be aligned with your partner regarding money how to make it, spend it, grow it, and save it.

Thats right! Money issues are indifferent to your age, gender, sexual orientation, life stage, and upbringing. And despite the material wealth and bright smiles we see on the outside, money issues affect rich couples, poor couples, and those in between.

Sadly, financial incompatibility is the leading cause of separation and divorce in North America which is a complete shame, because its avoidable.

But when couples are pulling in oppos-ite financial directions, they wont reach their financial, personal, and professional goals. This results in hurt feelings, major damage to a couples financial progress, and in so many cases, complete relationship breakdown.

As partners, we do our best to love, protect, and uplift our life mates. But far too often we downgrade the importance of financial security below that of travel adventures, weddings, new houses, cars, careers, and starting a family. Sure, these are awesome and deeply fulfilling dreams, but without financial security as the foundation upon which to build these dreams, youll become a slave to your loan, credit card, and mortgage payments.

Money issues are indifferent to your age, gender, sexual orientation, life stage, and upbringing.

Can you imagine how stressed and unhappy you would be if you and your partner ran the hamster wheel of debt for decades, never making any financial progress? Well, welcome to the lives of so many unhappy couples who are barely affording their lifestyle and blaming each other for being where they are. You know these people. Theyre house rich and cash poor. Theyre driving Land Rovers when they still have a landlord.

In contrast, the happiest couples are thought to be those who have high financial compatibility and work toward common goals. These couples make the most of what they have rather than focus on what they dont have. And many of them arent considered wealthy just yet but theyre well on their way to financial success.

No, money cant make you and your partner happy. But having it, along with a mutual commitment to a financial plan for the future, opens doors for couples. Without money, you and your partner must accept your circumstances both good and bad rather than choose whats best for your future.

Think of it this way: Lets say you and your spouse are in your early 30s and are without children. You make a combined income of $70,000 and are working hard to save up to move to France. In France, you will both retrain for new careers you as a chef and your spouse as a restaurateur. After five years of extremely frugal living and both working second jobs, you reach your savings goal of $60,000 together. You rent out your home on a two-year lease, purchase plane tickets to France, and off you go. When you and your spouse complete your training, job offers, as well as offers to finance your very own restaurant, come pouring in. Based on these preliminary offers, it appears that your combined income will be double what it used to be. You have many choices and agree to build a solid plan for your future.

On the other hand, imagine you and your partner are in your early 40s and have two children. Your combined income is $175,000, but you cant seem to control your spending. As the years pass, your debt load increases. Sure, your family looks the part, driving nice cars and living in a fancy house, but youre strapped and cant afford anything but your mortgage, credit card, and car payments. Soon enough, after a brief period of unemployment, youre behind on your monthly payments and creditors begin calling. You and your partner start having fierce arguments worse than in years past about money. In this situation, your choices are limited. Your family either repays what it collectively owes, which you cant afford to do at the moment, or youll lose your material possessions.

Having money helps you and your partner create higher-quality options for your future. And thats why smart couples take the time to build a plan to achieve financial success.

One-Size-Fits-All Doesnt Fit

There isnt a prescribed one-size-fits-all financial plan for couples. Financial success is defined and created by you. And youll know youve achieved it when you can choose what you want for your life.

Financial success for one couple could mean retiring at age 65 with $1.5 million in the bank, a home without a mortgage, and nice cars parked in the driveway. For another couple it could mean living and working abroad, building up a small, but sustaining, amount of retirement savings. The second couple would likely define financial success as having seen the world, whereas the first couple would define it as having enough to enjoy a luxurious lifestyle in retirement.