How To Discuss Money Goals With Your Other Half

Even the closest couples will agree that it is impossible to agree with each other all the time. And that’s what makes relationships special. Each person brings his or her own perspectives to the table. And if the relationship is a deep and mature one, both the individuals learn to move outside their own convictions and accommodate the other’s point of view on things like family, lifestyles, expectations, and of course, the big one: money.

Money can often be a long-standing cause of disagreement between couples. Money management is a deeply personal trait, like driving. Most of us assume that we know exactly how to spend and save. Hence, when a significant other criticises our financial habits, it can often lead to furious rows.

Like with any other disagreement between a couple, it is important to sit down and talk about money. Here’s how to approach that discussion with your significant other.

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1 Ensure that money management is a shared responsibility: A relationship is a two-way street, and the sooner you and your partner understand that, the better life gets. Just like other responsibilities, financial matters should be divided equally among partners. It’s unfair to expect one person to bear the entire financial burden of the relationship. The best way to ensure a comfortable and a mutually respectful relationship is to ensure that both partners contribute as equally and fairly as their finances allow them.

2 Understand each other’s goals and perspectives: Every individual is different and thus, what’s important to one person might not be important to another. The same logic applies to a relationship, and that’s why it’s important to understand and acknowledge each other’s goals and perspectives. What’s your spouse or partner’s five-year plan? How important is buying that additional Smart TV? These may seem like silly questions, but they hold the key to understanding each other’s long-term goals.

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3 Agree on how much to save and spend every month: Irrespective of who’s bringing in how much money, it’s important to agree on some spending and saving limits. Discuss with each other to arrive at a figure that you are comfortable with. If for some reason you can’t stick to the plan during a particular month, make sure you inform your partner about it.

4 Be open and transparent about all financial matters: Decisions like opening a joint savings account are important, so make sure you talk about it openly and clearly with your partner. If you would rather have separate accounts, always keep your partner in the loop in terms of your financial status.

 

5 Talk to an investment expert jointly: This will help you understand each other’s perspectives, choices and risk appetite and find common ground. It also creates a joint sense of responsibility, and allows facts and figures to dictate the conversation, rather than emotions.

Couples who agree on household finances are more likely to be satisfied overall with their relationship. The key phrase to remember here is ‘joint goal-setting’. It is important for two people to have a shared financial vision for their future and work towards achieving it. Mutual funds are a great tool for goal-based investing, as they allow users to select a time-frame, investment volume, and risk level that they are comfortable with. For more information on mutual funds and their benefits, check out the recent ‘Mutual Funds Sahi Hai’ campaign by The Association of Mutual Funds in India (AMFI) at www.mutualfundssahihai.com .

Money Money Money: Rising cost of higher education

It is that time of the year again when the young and restless are looking forward to an exciting start to their careers, the right marks, the right college and hopefully the right finances to back up all of those dreams. So whether you are a student or a parent, the question is, ‘Have you planned right for higher education?’ What are the do’s and don’ts as you go about pooling funds for your college? That is exactly what we discuss with personal finance expert, Harsh Roongta on this episoide.

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It is that time of the year again when the young and restless are looking forward to an exciting start to their careers, the right marks, the right college and hopefully the right finances to back up all of those dreams. So whether you are a student or a parent, the question is, ‘Have you planned right for higher education?’ What are the do’s and don’ts as you go about pooling funds for your college? That is exactly what we discuss with personal finance expert, Harsh Roongta on this episode.

Money market rates may limit Fed's balance sheet shrinkage: BAML

NEW YORK (Reuters) – The Federal Reserve’s plan to start reducing the size of its balance sheet later this year may be limited by the resulting upward pressure on money market rates, according to a Bank of America Merrill Lynch (NYSE:BAC) strategist.

The U.S. central bank has signaled its intention to reduce the size of its $4.5 trillion balance sheet later this year as it remains on track on a gradual path of interest rate increases amid an improving economy.

© Reuters. A police officer keeps watch in front of the U.S. Federal Reserve in Washington

“Given our expectation that most of the Fed balance sheet decline will be concentrated from foreign bank reserve holdings and lower Fed repo activity, the Fed may only be able to reduce their balance sheet by $1 (trillion) before funding markets materially tighten,” Bank of America Merrill Lynch’s head of U.S. short rates strategy Mark Cabana wrote in a research note on Thursday.

As the Fed pares its balance sheet, it will to reduce the amount of excess reserves in the banking system, which would likely put upward pressure on borrowing costs in money markets.

The Fed has yet to offer details on the amount it plans to taper its reinvestments in U.S. Treasuries and mortgage-backed securities and a desired size for its balance sheet.

The Federal Open Market Committee, the central bank’s policy-setting group, will hold a two-day policy meeting which will begin next Tuesday. [FED/DIARY]

WWE & Puma Launch $500 Limited Edition Money In The Bank Shoes

Are you a pro wrestling fan with way too much disposable income and way too little taste? If so, then we’ve got the story for you!

WWE and Puma have partnered up to produce a limited edition line of WWE sneakers commemorating this Sunday’s Money in the Bank PPV. The gold shoes are adorned with dollar signs and a Million Dollar Championship lace decoration and hundred dollar bill insoles, and appear to come in a replica Money in the Bank briefcase instead of a shoe box.

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The shoes will retail for $500, and are available only in select Foot Locker stores on Saturday, so you’ll have to use Foot Locker’s product launch locator to find a pair of Money in the Bank PUMA x Clydes. Then, you just camp out outside your local Foot Locker (or one 500 miles away, depending on where you live), purchase the sneakers, and you’ll be stylin’ and profilin’. Right, guys?

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Well, who cares what they think?! Sure, walking around in shoes this ugly might get you Roman Reigns levels of heat, but nobody will be laughing when you cash in your opportunity for a WWE Championship title match!

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Wait, what? The shoes don’t come with one of those? And they still cost five hundred bucks?!