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Four Money Myths That Could be Hurting Relationships, PART 1
Money is very frequently an issue of contention in relationships and if it doesn’t directly cause arguments, it certainly can generate a lot of stress. Even worse, a difference in salary can throw off a healthy balance of power. Rancho Santa Fe’s JKL Wealth Management firm has five important things to say about money in relationships and how these four myths could be contributing to tension in the home.
Money Myth # 1: Power to the partner who earns more
“It is a terrible mistake to judge a person’s ability, potential and the value of their input by the dollars and cents they earn,” says John Lohrenz of Rancho Santa Fe’s JKL Wealth Management. “Your salary is only a rough approximation of your skills, intelligence, aptitude and intuition. The spouse who earns more might not have the investment sense of the other, so it may be foolish to leave all the financial decision-making in the hands of the higher earner. Just because he or she lands a higher income, doesn’t mean they know more about managing money or that they have better investment sense.”
The message here is that any marriage, partnership or relationship where money is pooled must be a team effort and, as such, the decisions should be made together. You should respect your partner’s input and insight just as you would like them to respect yours. This is regardless of whether they earn less than you or even if they are a stay-at-home mom or dad.
And Rancho Santa Fe ladies: even if this is the case and you are a stay-at-home mom, that’s no reason for you to remain financially illiterate and to allow your spouse to make all the decisions. Educate yourself and become an active player in your relationship’s finances, because, in love and in money, worst-case scenarios should always be avoided.
Money Myth # 2: Cents don’t make millions, good sense does.
Saving is always a good idea, but you need to be careful how you do it or else you’ll find yourselves throttling the life out of your relationship and your potential for future earning.
“You need to spend money in order to make money, so if he wants to take that online course to improve his skills, encourage him to. If she wants to go to that international conference to network and catch-up on the latest industry news and products, encourage her to,” advises Rancho Santa Fe LPL financial advisor, John Lohrenz.
A partner who nickel and dimes is not only unpleasant, but it can put a real damper on any relationship. Don’t restrict your partner’s potential by refusing to invest in him or her. This won’t only cultivate resentment; it’ll also limit success and earning potential. Also, the cost might ultimately be the relationship.
To read Part 2, click on the link below:
Wealth Management San Diego, PART 2
If you want to get started on your journey today or would like individualized investment/financial advice from LPL financial advisor, John Lohrenz, please contact JKL Wealth Management at:
Phone: (858) 535-1705
Fax: (858) 535-1701
Alternatively, fill out the Contact Form and we’ll get back to you shortly.
731 S. Hwy 101, Suite 2K, Solana Beach CA 92075
About Rancho Santa Fe, San Diego
Rancho Santa Fe – otherwise known as “The Ranch” – is nestled in San Diego County in the state of California, U.S. It has a total land space of 6,788 square miles, of which 6,715 square miles is land and 73 square miles consists of water. With regards to Rancho Santa Fe’s climate, it shares the same characteristics as the climate of the San Diego metropolitan area, although it tends towards bigger temperature variations. As a family orientated community, there are many things to do in Rancho Santa Fe, whether you live here with your family or are a tourist, including attending The Garden Club flower show, the Golf and Tennis Club or shopping in the Rancho Santa Fe Village or Del Rayo Plaza.