Money Issues Couples Should Agree On.

PositionPERSONAL FINANCES

Spouses often harbor different opinions on a variety of subjects. From the style of clothes and haircuts they like on each other to the TV shows they watch every evening, marriage requires plenty of compromise. While choosing among television programs might conjure up a minor squabble, when it comes to arguments over money, respective differences can lead to more than just mild disagreements.

"Income and spending are at the heart of any partnership--family as well as business," says real estate investor Al Jacobs, author of Roadway to Prosperity: A Practical Guide to Wealth Accumulation. "Just as business partners need to be on the same page when it comes to spending company money, spouses need to come together to avoid creating a crisis situation that could ruin a marriage."

Jacobs explains there are four basic issues that would put families in better financial shape if both spouses could be in accord on them:

Life insurance. Every family provider should arrange financially for his or her survivors in the event of an untimely death. A common way to accomplish this is with life insurance. This is where controversy arises. You want an inexpensive and unadorned 20- or 30-year level benefit term policy, of sufficient face value (normally no less than 10 times the insured's annual income). Spouses must agree on a policy and not waiver once it is purchased.

Credit cards. No single implement has led to greater misery for more families than the credit card, Jacobs maintains. These should be used as merely a convenience when cash is not available, and account balances should be paid...

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