Recently, an SOM survey conducted for the 985fm revealed how couples deal with money issues. In cases that are frequently cited as grounds for divorce, 25% mention money issues and disputes over future plans. Obviously, to achieve common projects like travel, marriage, a house, renovations and children … it takes capital. In 16 years of business, I have seen couples tear themselves up for financial reasons. Here are the 5 bad financial habits that come up the most often and sometimes lead to the separation of the couple or outright personal bankruptcy.
Have some dependence
There are obvious addictions like gambling, alcohol and drugs. But there are also more insidious addictions that create the bastard. Compulsive shopping is becoming more common and leads to chronic debt. Some also engulf real fortunes in collectibles of all kinds (spoons, vinyl records, figurines, antiques, video games …). The guys will often exaggerate with the tools and gadgets technos but more and more, we see who spend a fortune in designer clothes. I also note that some ladies make compulsive purchases of beauty products or expensive wines.
A joint account pell-mell
When sharing family expenses, the joint account has its usefulness, but also has its share of pitfalls. When all the income and expenses of the couple are pell-mell, you are at high risk! You increase your chances of writing bad checks and tainting your credit report. I have already heard a client tell me that his ex, leaving him, had been careful to clear the account just before the mortgage, tax and car payments passed. Of course, all these payments were skipped and Mr. had 4 bad checks in his file in the current month.
Do not respect the plan
Do you have your savings plan or debt reduction plan? Congratulations, you are part of a minority of Quebecers. You have automatic debits and know that in “X” years, you will be able to take a semi-retirement! But, if your spouse is dragging his leg and regularly skips his dues, the plan does not hold water. The quibble can escalate if a partner’s recklessness results in the suspension of an education savings plan or the enrollment of a child in his or her swimming lessons.
Take out loans in the family
Among the situations that rarely end well is when you incur personal debts with your family. If ONE of the conditions is not respected, the family tensions settle down. If you absolutely have to go through there, please establish a formal contract by setting a realistic interest rate. While there, make the notary! It will avoid many problems.
Finally, it does not sound like that, but if parents disagree about whether or not to buy a property for the children, there is a need for consensus in private. When argumentation takes place before children, it is clear that our little horned angels will emotionally exploit the most prone parent to the expense. If this happens too often, it can disburse the entire budget and cause conflicts. In the end, Junior will have his digital tablet but a hole will be hollow in the finances.
Remember: If you want your partner to last a long time, make a real budget and regularly address financial issues.