5 Money Conversations Every Couple Must Have
Financial advisor, Beau Henderson, shares 5 money conversations that are crucial to every successful relationship.
My radio guest, Beau Henderson is a financial advisor, syndicated radio host and bestselling author. He writes and speaks internationally helping people create success with both money and life. The new release of his best selling book The RichLife -Ten Investments for True Wealth can be found at www.RichLifeBook.com. Beau joined me on Last First Date Radio to discuss the 5 money conversations every couple must have. Highlights below.
5 Money Conversations
Why is it so important for couples to talk about money?
I’ve talked to over 3,000 couples and realized we’re raised to only talk about money when it’s stressful. We fight. We saw money cause divorces. Money fights are the #1 predictors of divorce. Money is a tool and we need it to live. If we can use it in it’s proper context, it takes the heat out.
What are the 5 conversations every couple must have about money?
We need to talk about money in the same way we talk about anything else. You have to be real to get rich.
1. What’s coming in, what’s going out? Where are we now?
If we don’t get to that place, we make assumptions. If we have the real starting place, we can have clarity.
2. Let’s get clear about our goals and expectations.
Let’s talk about how we both handle money. For example one partner might plan on retiring in two years, and the other plans to start a new business. Find out if there’s a middle ground where it can work. Find out, “Where do you want to go?”
3. Behavior. Talk about the roles you each play in your financial life.
One person is usually better at running the books. The other is better at big picture goals. One person should not run everything. Both should know what is going on. Schedule talks about money monthly. Make it a date night. 30-minutes to talk through goals.
4. Risk transfer.
Make sure insurances are covered. Talk about critical illness. Protect your assets. Long-term care in place?
5. Estate planning.
Everyone needs a will, a financial power of attorney, a health care directive. What happens to blended families? Spell it out.
What’s your number one secret to living your own rich life?
My rich life is when I found something that I cared about, my mission that was bigger than me, that I could measure every day…that helped move my mission forward. What lights me up is spending time going into middle and high schools and teaching financial literacy to those kids. My goal is to reach a million kids.
I love Beau’s mission and his definition of a rich life, don’t you?
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