Working towards someone else’s goal
Two individuals will have different financial goals and dreams. Whatever your individual goals may be, you need to work towards finding common financial ground on which to start building your life together and ensure that both sets of goals are fairly represented.
Committing financial infidelity
This is hiding financial decisions and transactions from your partner.
Sharing your finances with family and friends
A couple’s financial circumstances are private, and this privacy should be respected by both partners in the relationship.
Engaging in financial power struggles
Financial power struggles tend to arise where one partner earns significantly more than the other, or where one partner’s net asset value is significantly greater than the other.
Going into the marriage or relationship blind
Before entering a long-term relationship, it is only fair to disclose all material information relating to your finances including debt, previous failed business ventures or insolvency, maintenance obligations and loans made to family members or friends.
Not signing an antenuptial or cohabitation agreement
Many couples avoid signing an antenuptial contract or cohabitation agreement because of costs and convenience, but the effects of doing so can have significant financial consequences if the marriage or relationship dissolves.
Not talking about your aged parents
As your parents age, you may find yourselves needing to assist them financially, emotionally, or logistically, and this can put a strain on your relationship.
Allowing one partner to take control of the finances
Relinquishing financial control to one party in a relationship is one of the worst mistakes you can make as it leaves you vulnerable and financially exposed should tragedy strike.
Not having your own bank account
Regardless of how you choose to manage your money and bank accounts, it is always advisable that each partner has a bank account in their own name.
Assuming the stay-at-home spouse does not need life cover
When considering life insurance for the stay-at-home spouse, consider the cost of replacing her / his role as carer, transporter, cook, cleaner, childminder and homework supervisor, and then protect that risk accordingly.
Prioritising your children’s education over your retirement planning
As much as we all want to provide our children with the best possible opportunities, sacrificing your own retirement planning to pay for your children’s tertiary education is not ideal.
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Source: Moneyweb.
Edited by Anton Schutte: Recruitment Manager, Wealth and Risk Planner and Certified Financial Planner CFP®: PWG Group