sex and relationships
April 24, 2023 | 12:23 PM
This money mistake can have a negative impact on your marriage.
Couples who are unable to discuss their financial situation and put an action plan into action for saving can pay a heavy price when it comes to fighting over money.
“The number one mistake is avoiding money. netflix Series “how to get rich’” he told the Post.
The eight-episode series follows Sethi, author of I Will Teach You To Be Rich, Podcast host of the same namehe audits people’s personal finances and guides them on how to allocate their savings to live the best “rich lives.”
In each episode, Seti digs into people’s bank statements to determine income, debt, savings accounts, and spending histories. This lets you know where people are spending the most money.
The couple “lacks a vision of what they should do with their money, and therefore they lack a ‘vision of a prosperous life’ together,” he pointed out.
“People will argue about how much one person spends on a target. Stop asking the $3 question, have to ask the $30,000 question.”
Indeed, rather than punishing your partner for eating a steak at the grocery store or buying a new branded purse, Sethi said the big picture about saving should be the cornerstone of the conversation.
Instead, he said couples should ask: What is your savings rate?
“If your savings rate is 4% and you and your partner agree to increase that number by 1%, your savings and investment decisions are worth hundreds of thousands of dollars.”
Talking openly about your financial future can save your marriage. A shocking 62% of her admit to arguing with her partner about money. This is according to research by mutual pension and investment provider Royal London. The Independent reported, found. Thirty-three percent say their attitudes about spending and saving are at odds with their significant other.
Outside of marriage, Sethi’s work is to help people understand the psychology behind their spending habits and their fear of talking about money. The show includes helping a young female homeowner figure out how to pay her mortgage and helping a divorced business owner avoid living paycheck to paycheck.
“For most people, finance is a reactive trading decision. I love what it can do for us, but I also hate the process of managing it.
Whether you’re married or living independently, the first step Sethi advises on the show is to keep track of the four numbers. First, determine your fixed expenses like mortgage, utilities, car payments, groceries, and debt, and allocate 50-60% of her monthly take-home pay to it.
Next, you should start your emergency fund by automatically deducting 5-10% of your income from your paycheck into your savings account. This is what Sethi calls “money you won’t need for 1-5 years.”
Third, allocate 5-10% of your take home income to investments.
“Obviously, the more, the better, because that’s how wealth is created,” Sethi said.
And finally, I urged people to set aside 20-35% of their take-home pay to spend on whatever makes you happy: travel, dining out, movies, cocktails.
Sethi suggested setting up automatic payouts for savings to make sure the right amount is allocated. Plus, it eliminates the daunting task of setting and sticking to a budget.
“I often hear people say, ‘I’m trying to save money at the end of the month, but it’s going to be hard.’ Saving money is actually easier than brushing your teeth because the moment you get paid. Because you can automatically set it to go from spending money defending to attacking,” he said.
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