Most young couples ages 25 to 45 have conversations and agreements around money related to what they plan to consume not save.
That’s really it, there is no plan to save and if there is, that plan is not primary or even secondary. The plan to consume is a top priority and thus most relationships are problemactic as it relates to money.
In fact the savings of most young people is really a preconsumption fund, meaning money saved for retirement is subject to be tapped if a new house, car or private school for the kids comes along and thus it was never a future fund from the start.
At a minimum a family needs three things financially:
1. Life Insurance to totally replace each bread winners income and get the family through all the years they would be dependant on that income.
2. A plan to save at least 1 million dollars by retirement. You will need at least this by the time you retire.
3. An agreement not to blow the future on temporary cars, houses, and other things that come along and derail you from your plan.
It is my belief that 50% of marriages don’t need to end in divorce. Most of it is bad planning and financial stress caused by bad decisions. Keeping your family intact is the best reason of all to do the right thing.
Wishing you Wealth Wellness and Wisdom
Manager of Wealth