Money issues are one of the worst relationship spoilers in India – and is the leading cause of divorce! Here are top reasons why this happens!
Taking care of these will ensure that your family stays together. It is not only between the spouses, but the whole family and the extended family that will get the benefit of good financial communication.
One person handles the finances and the other person does not participate –voluntarily or because of manipulation. One partner is the designated banker, taking care of all the investments, bills, and anything related to money, while the other did not participate! As a family, all adults should have an idea of their assets, liabilities, income and expenditure. Children should know whether the family can afford foreign education, vacation, etc.
Not making a will – In case of death, the family has no clue about what assets are meant for what purpose. This is one of the biggest yet easiest to overlook money mistakes that couples make. If one (or both) passes away unexpectedly, not having a will in place can make life very difficult for the family members left behind. Dying without a will means the state decides what happens to your finances and possessions instead of you, and you can lose out on tax benefits.
Not keeping a proper budget, and not keeping track of income and expenditure.
Expecting 100% understanding of each other’s money attitudes. This can never happen. Don’t expect that all of you want to account for every rupee that you spend.
Not having a financial plan –in fact this should be number one. A financial plan helps in a harmonious relationship. When you have a financial plan it’s easy to see the full picture and manage lifestyle changes.
Not talking about money at home – with spouse and kids. Financial communication is the best way to strengthen all relationships including financial. Talk about money to your family, regularly. As kids know where you stand financially, they will know what amounts of money you can spend on their wedding or education.
Giving loans to siblings, cousins and friends without asking permission of the spouse: Men do this, but women are guilty too! When the husband wants to give a loan to his siblings, parents, or friends, he should let the wife deal with the amount and terms and conditions. When the wife wants to give a loan, it should be the husband’s prerogative to decide on the terms.
There are other money mistakes that families can make. For example, when one spouse decides that they will not contribute (or contribute much less than one’s capability) the other spouse is hardly left with a choice!
These are some of the biggest mistakes that I have noticed, and I am sure many of you can add more!
However, if you know what you are doing…reading this will help you save your family life!
PV Subramanyam writes at www.subramoney.com and has authored the best seller ‘Retire Rich - Invest C40 a day’