Navigating Finances Together: How to Have A Honest Money Conversation

Written by mwealthgroup
Published on January 16, 2024

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Do you avoid having conversations about money?

Money conversations can be really uncomfortable. We get it!

But transparency is key for alignment on financial goals, whether that’s with your spouse, family member, or business partner. 

This blog explores helpful strategies for navigating these tricky money talks. By regularly checking in on goals and priorities, you can take the right actions today to make your ideal future happen. 

It's time to embrace constructive money talks to get on the same page and grow together. Start overcoming money taboos to build your financial plans!

In this blog, we'll outline the four key steps to take in order to have an honest conversation about money, including:

1. Be Transparent About Your Current Financial Reality

Most people have no idea where they stand financially. 

They don't track their full net worth across assets, don’t evaluate what their business is truly worth, overpay taxes without realizing it, and the list goes on. Your net worth is the value of what you OWN minus what you OWE. 

To know where you stand (your net worth), you must regularly monitor your full financial picture across bank accounts, investments, assets, and liabilities. 

openly discuss finances during money talks

Tip: Use a financial tracking system to monitor key metrics regularly. This transparency will remove all money mysteries between you both. We offer detailed financial tracking in our Wealth Kickstart program.

2. Align on Your Shared Vision of the Ideal Life

Discussing your “ideal life” or “shared vision” is key when it comes to discussing money.

Ask questions like: What is your dream life? Do you desire world travel? Living in the country or in the city? Giving generously to causes that matter? What experiences and possessions are important to you? These can be altered based on the citation or scenario.

Maybe, in your marriage, you dream of regular vacations to tropical islands all over the world, and your husband wants to cruise to Alaska. 

Maybe, in business, you want to take expensive training to gain new skills. However, your partner wants to buy a new business software for better performance insight.

Even though these visions differ, you can incorporate both into your planning, which prevents resentment. You determine what lifestyle and discretionary spending makes you feel happy and fulfilled.

how finances can support goals

Tip: Schedule regular “money check-ins” to touch base on how current spending and savings align with your goals and vision. This can help create a non-threatening space for honest and transparent conversations about money.

3. Plot a Path Between Today and Your Goals

Okay, you know where you stand financially and have defined your shared vision. Now, it's time to connect the dots.

Given your current assets and monthly surplus, how can you take trips, upgrade homes, invest in time-saving services, grow your business, etc.? How far off are you from being able to fund your vision through reasonable forecasting?

From here, you can explore options that might accelerate your time horizon, whether saving aggressively, investing wisely, boosting income, or diversifying streams. 

Mapping out potential goal pathways

There are a few steps to take here:

  • Assess your current ability to fund goals - Based on your present income, expenses, assets, and debts, what is your monthly and yearly surplus to put towards goals? Do a detailed analysis so you know how much is realistically available.
  • Calculate goal funding requirements - For each major financial goal, estimate the total cost required and by what date you'd like to achieve it. This quantifies the gap between today and your vision.
  • Model different goal achievement scenarios - Now, use calculators and spreadsheets to estimate time horizons. Determine when you could afford certain goals if saving X% of income or earning Y% annual investment returns. Test different parameters.
  • Identify options for accelerating progress - If the scenarios show you're far from being able to fund key goals anytime soon, look at options for improving the picture. Could you invest in income-producing assets? Trim expenses to free up more money? Develop new income streams through passive or active ventures.

Clarity on time horizons and options empowers you to make daily aligned decisions. And it motivates you both to take responsibility for reaching faster. This financial plan becomes your roadmap.

Tip: Use calculators or online planners to estimate when to achieve targets based on saving rates and investment returns. Plug in different scenarios to create alignment.

4. The Role of Compromise

Effective financial planning hinges on effective listening. Understanding each other's financial perspectives and goals is crucial in any relationship. This approach leads to more empathetic and productive financial planning.

In financial planning, compromise is often necessary. Finding a middle ground that satisfies all parties while aligning with overall financial objectives is a skill that can significantly benefit long-term planning and relationship dynamics.

finding a compromise during a talk about money

Tip: When disagreements arise, each partner should propose a compromise solution. This exercise can help find a middle ground that respects both parties' views.

The bottom line is you’ve got to confront every area of your finances openly and regularly to optimize decisions today. Money mysteries kill dreams – so learn how to have a conversation about money with your partner today! 

What action can you take this week to move towards more transparency?

Conclusion: Honesty is the Answer

Honesty is not just the best policy in finance; it's the only way to guarantee lasting success and harmony in your relationships, whether with your spouse, family, or business partner.

For more information on how to have a conversation about money with your partner, check out the book, “Let’s Fight About Money.” It was written by Martin and Chelsea Matthews, financial advisors and co-founders of M Wealth Group.

Ready to transform your finances with honesty and clarity? Connect with Martin and Chelsea at M Wealth Group and confidently navigate your financial future. Reach out today and take the first step toward a unified financial life guided by experts who believe in the power of transparency and ethical financial planning. Click HERE to take a look at our Wealth Kickstart program to fast-track your wealth building.

Book your complimentary financial review!

Ready to change your financial future? Schedule your free consultation with Martin and Chelsea Matthews, owners of M Wealth Group.
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M Wealth Group
M Wealth Group
Together, Martin and Chelsea use their professional expertise and life experiences to provide personalized financial strategies to help clients achieve their goals.
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