Manage Your Life

Monday, November 30, 2009

Are you a saver – and he’s a spender? How to fix those money problems

If you like to save for rainy days and he’d rather buy umbrellas, rain gear, and rubber boots when payday hits, then you’re coping with two different money personalities!

Here are five money fixes…but first, financial guru Suze Orman weighs in about money and relationships:

“Opposites may attract, but I wouldn't put my money on a relationship of financial opposites,” says Orman.

But don’t worry: Just because Orman wouldn’t bet her money on a couple with two different money personalities doesn’t mean that couple is headed for relationship breakdown or serious financial problems! 

The two basic money personalities are savers and spenders. If you’re a saver married to a spender – or a spender married to a saver – you’ll run into different relationship challenges than two spenders, or two savers.

Here are five ways to deal with those money problems:

1. Know your FICO score. “If you forced me to pick one single bit of advice that would have the biggest impact on turning around your financial situation, I wouldn’t hesitate for a second,” writes Orman in The Money Book for the Young, Fabulous, & Broke. “You have to know your FICO score.” Before you tackle your “saver versus spender” money personalities, learn about your credit score.

2. Separate your finances. Consider having two separate income streams and bank accounts. This way, if you’re a saver you can invest your money any way you want. If your partner is a spender, he can spend his earnings any way he wants. You can divide the household bills and other sources of debt, and pay for those equally but separately.

3. Learn how to talk about money objectively. Whether you’re deciding how to invest a $10,000 windfall or struggling to pay off medical debt – you need to talk about your financial problems or perks rationally. This means no blame, resentment, or bitterness. For help, read Tips for Talking About Money for Couples.

4. Talk about your money personalities before marriage. “After you marry, every asset either of you acquires is jointly held,” says Suze Orman. “That's why you both need to be in sync on your long-term financial goals, from paying off the mortgage to putting away for retirement. Ideally, you should talk about all this before you wed. If you don't, you can end up deeply frustrated and financially spent.”

5. Consult a financial planner. Fixing money problems can get difficult – and those difficulties affect other parts of your relationship. Consider talking to a financial planner who can help you see the big picture. He/she can help you set your general financial goals (eg, retirement planning), as well as determine the details that will help you achieve those goals (eg, a monthly budget).

Spenders and savers can learn to live together happily…it just takes a bit of work! If you’re just starting a new relationship, you might be interested in reading How Not to Lose Your Personality in a Romantic Relationship.

Laurie Pawlik-Kienlen is a full-time writer and blogger who created and maintains a series of Quips and Tips blogs: Quips and Tips for Successful Writers , Quips and Tips for Achieving Your Goals , and Quips and Tips for Couples Coping With Infertility . She's also the Feature Writer for Psychology Suite101 .
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Comments 1-2 of 2
  • Mrs. Carol B's Avatar
    Posted by Mrs. Carol B Mon Aug 31, 2009 10:53am PDT

    Nice.

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  • __A_YAHOO_USER__'s Avatar
    Posted by __A_YAHOO_USER__ Mon Aug 31, 2009 4:38pm PDT

    This was useful..just wish their were more...

    My fiance and I are having serious financial issues, but he doesn't see it as an issue..I call it selfish, he calls it saving...but in all reality it took him multiple months just to save 30 bucks. He wants to spend spend spend like he doesn't have any obligations, and it is very frustrating to me...especially when he can come to me and I'm always there...but on his end...it's the exact opposite!~

    Report Abuse
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