Showing posts with label agreement. Show all posts
Showing posts with label agreement. Show all posts

Tuesday, June 5, 2012

CREATING MONEY ADAGES


Unlike money, money adages do “grow on trees.”  They are abundant and your job is to select those that work for you.  If you are comfortable and never worried about your debt, then one money adage might be “seek as much credit as possible.”  If you want to be known as being generous then one adage might be “give away what I don’t use.”  Creating money adages only requires that you determine what pleases you and what makes you comfortable.

With couples, money adages need to be discussed and negotiated.  Just like blurting out what you might like sexually, saying what you want with money can be trying and difficult.  There are two forces at work that inhibit discussion and negotiation.  First, is the fear of being rejected for your (cherished) point-of-view.  Secondly, and this is related to the first and more pernicious, is your desire to be seen as being “right” about money.

It is fairly straightforward to deal with the fear of being rejected.  What lies at the bottom of this fear is not being “heard” by your partner.  Learning to listen to your partner and to draw that person out making sure to repeat what you heard to get the understanding absolutely clear is the key.  It does not require judgment.  Rather you listen with curiosity and demonstrate your understanding.  No guidance or helping hand is necessary.  Just listening and understanding.

How do you give up being “right” about money?  This is a deeply emotional issue for most of us and maybe more so than in sexual matters.  Growing up we were a party to literally hundreds of ways to deal with money from close family members to other relatives, neighbors and our friends and their families.  All that time we were determining what was “best” and therefore what was “right” about handling money.  We do not see money as an individual thing.  We believe there are “right” ways and “wrong” ways to deal with money.  After all, we’ve seen so many examples of “failures” and a few “successes” in our lives.  Instead of being outside ourselves, money matters come from within.

To start to tap what is within us I nudge people to do two things: give up being right and draw your inspiration from a place of abundance.  We don’t usually think of money as being abundant, but it can be.  Yes, we work for a living to feed, clothe and house ourselves and the people close to us, but that isn’t all there is out there.  Abundance doesn’t mean free.  It just suggests that there are ways to have more money pass through us if we choose to pursue more and ways to accumulate it if we so choose.

Abundance also implies stewardship of money so you can do the things money allows you to accomplish.  Stewardship applies to both how you spend money to live now and how you manage or invest it to bring passive income to you in the future.

Finally, how you view and use money changes over time so your adages need to be flexible.  Evaluate how you are meeting your adages every three months or so and then see if they have shifted or changed.  Make modifications, additions or subtractions to your adages as they are discussed and negotiated.  Change is inevitable so anticipate change over time and make it part of your money life together.  At www.thecenterformmarriage we assist you in creating money adages so you can be more at ease with money and in agreement with your spouse.

Wednesday, May 30, 2012

MONEY ADAGES

The money adages below are things to remember, to come back to and to re-learn as we go through life.  Since no one can accurately predict the future, the expectations we have for the things we put into practice today may not pan out.  That is the first adage: Our wealth and income will go up and down over our lifetime in an unpredictable manner.  The only things we can control are what we spend on now and what asset values we can insure today.  The rest is subject to chance and risk which we cannot control.

Couples need to work to come to agreement on their own set of money adages and be supportive of one another when either party deviates.  Then they need to be lovingly ready to come back to the adages agreed upon.  In addition, couples must also agree on how to amend their adages as life evolves for each of them.  Otherwise, money matters will become emotional separators in a relationship and couples will begin a spiral of resentment and withdrawal which can lead to terminating the relationship altogether.

I will discuss each of these adages and the issues surrounding them in subsequent posts this summer.  To become a “well-to-do” couple (meaning few worries about money as new opportunities present themselves) the most important adage is number 3: Spend quite a bit less than you can earn.  The reason is that income can vary greatly and expenses are largely built-in to our lifestyle (rent, utilities, food, gas, etc.) and are difficult to change.  If you choose instead to live paycheck-to-paycheck you will have few options when life changes and also, and most importantly, you will be working the rest of your life!  No one else is going to take care of you and your family as you age so it is important to save as much as you can now.

Here are the adages:

1.       Wealth and income vary a great deal over a lifetime
2.       Protect yourself against financial loss
3.       Spend quite a bit less than you can earn
4.       Learn how to do financial investing
5.       Learn to discern “bad debt” from “good debt”
6.       Couples manage financial affairs well when they agree
7.       Small investments pave the way for larger investments
8.       Financial planning works backwards from old age to the present
9.       Control as much as you can and insure the rest
10.   Doing all the above will make you well-off, but not wealthy
11.   To become wealthy you will have to risk it all
12.   Be prepared to start over again and again