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Practical Planning Tip: Who You Decide To Marry - Spender vs Saver

April 03, 2024

Today we’re going to discuss why The Most Important Financial Decision most people make is Who You Decide To Marry.”

 

When most people think about “their most important financial decision” many people typically include items related to living within their means, saving for the future, investing, estate planning, insurance, and other personal finance topics. While these are all essential components to a sound financial strategy, I contend that the single most important financial decision most people will make is who they decide to marry. This may seem surprising, but it’s the truth. Who you choose as your mate is more important to your wealth than your asset allocation, retirement accounts, and even pursuing a high paying career.

You don’t need to take my word for it. Legendary investor Warren Buffet seems to be of the same mind. At the 2009 Berkshire Hathaway annual meeting, he told the audience this very point.

Based on my observations of over the nearly two decades I’ve spent working with families, I outline the ways in which choice of spouse can be the biggest force in creating wealth or eroding it over time. As you watch this video series, be introspective on what you can do to improve your relationship and handling of money; and pay attention to financial red flags to consider when dating a potential life partner.

The first item to consider is whether your mate or potential mate is aSpender or saver: The most obvious impact spouses have on the family nest egg stems from whether they are a spender or saver. There are some people who need to spend every dollar they have. They may love expensive things or just simply too many things. Every penny in their bank account will be spent if they see it. It’s a sickness that can force your family into the poor house. There are, on the other hand, people who ensure they always have an ample cash cushion, they clip coupons, live within their means, and actively look for discounts when they need to make a purchase. It only takes one spouse’s irresponsible spending habits to derail a family’s finances.

You can WATCH the full video here.