Skip to main content

Are you a victim of Financial Infidelity?

Image courtesy of stockimages at FreeDigitalPhotos.net

Shikha is scared to death. She doesn’t know what to do. She and Rahul got married last year. Rahul had his job in Bangalore, so Shikha had to leave her job and has settled down as homemaker in Bangalore. She had one credit card from the time of her working days. When Rahul was gone to office she used to go out and buy things for herself from that credit card. Since she was working before marriage, she never got the habit of asking money from Rahul. And even Rahul never bothered to check if she needs some money for anything, because most of the time they used to do shopping together and Rahul settled the bill. But now due to extensive usage of her credit card and non-payment, credit card dues have mounted up to Rs. 25,000/-. And Shikha has no idea of how to break this news to Rahul.

As per Wikipedia, Financial infidelity is the secretive act of spending money, possessing credit and credit cards, holding secret accounts or stashes of money, borrowing money, or otherwise incurring debt unknown or unwilling to one's spouse, partner, or significant other. Financial infidelity in a relationship may also include any financial decision(s) made by a partner that may effect, burden, strain or set back the financial planning of the relationship.

To embrace today’s lifestyle, couples these days prefer to have double income rather than depending upon one person’s salary, but it also brings in a lot of financial independence for both of them. And at some point, they forget the importance of sharing the financial details with each other. It all starts with the small things, telling that you have bought the dress on sale, when actually you have bought it at full cost price, hiding your purchases, not telling anything about pending credit card bill and taking a loan from friend to cover that. These all acts are small steps towards financial infidelity.

We all know that for a marriage to stay truly blissful one need to be utterly honest and faithful. But, when it comes to money most of us lose the grip. Have you ever imagined a scenario, where if you meet an untimely death, what would your spouse do if he/she has no idea from where to start with in terms of your pending dues, your investments, your bank accounts, your insurance policies, or even the loan you have given to your friends. Nobody will come out in front and tell your spouse that he/she owed you money and now that you are not there anymore he is returning it.

Most of the times we don’t share financial details with our partners is because of the simple reason – Mismatch in financial aspirations. For you, buying a home might be a priority but for your spouse, a Car is a must have before owing a House. In such cases, both the partners must discuss things and understand each other’s perspective towards money. Talking about such matters, can help couples work out the differences between themselves and chalk out a better financial plan for both of them. Couples can also set a budget for each other - One cannot spend more than x amount without consulting the other partner. This doesn’t only bring the financial security but also adds on to the stability of marriage.

From a Financial Planner’s perspective, one cannot achieve his/her financial aspirations without enrolling his partner into this journey. Goals like Retirement, Child’s education, need thorough details about family’s expenses, income, their lifestyle changes and cannot be accomplished with just one person involved in it. Financial infidelity puts family’s Financial Well-being into danger and makes it difficult to achieve the financial goals.


Charu Hastir, CFPCM is founder of www.theriteplan.com. Rite plan is an online financial planning portal created to achieve a single objective of providing easy and Do It Yourself Financial Planning to netizens. Rite Plan is wholly owned by Tikkun Olam Financial Planning Services LLP. Please visit: https://theriteplan.com/index.php?route=common/home/

Comments

  1. There is an old proverb 'man proposes snd God disposes'.But in today's materialistic and fluctuating world it is no longer true.If a man or that matter a woman plans his financial dtakes well in advance then his immediate family can survive the turbulence thrown in life by God/Fate ! One should hope gor the best nonetheless br prepared for worst scenario.

    ReplyDelete

Post a Comment

Popular posts from this blog

What to do when Stock Markets suddenly go up?

“Far more money has been lost by investors preparing for corrections, or trying to anticipate corrections, than has been lost in corrections themselves.” – Peter Lynch

This May we have seen BSE SENSEX moving from the levels of 39,031 on 30th April to 37,090 on 13th May and then back again to 39,352 on 20th May. Such volatility in such a short period makes us doubt our investment decisions and questions our long-term plan of staying invested in the equities. This Market volatility has the power to change our investment strategies and at times even question it. Sometimes we think that we have missed a golden investment opportunity and on other times we assume that we have invested at a very bad time. At the very best it keeps us confused on our next steps.
John Maynard Keynes has rightly said that "Markets can remain irrational for longer than you can remain solvent." But how should we treat our investments when we come across such turbulent times and what is the right course…

5 ways to trick yourself into Saving Money

Saving money has always been a daunting task and most of us fail miserably at it. One can relate more to this after seeing the average savings contribution. Lavish vacation or a fancy car can always distract us from our long-term goal of owning a home. It was easier in the earlier times when the life expectancy was lower and there was no need to plan for the long term. But now with increasing life expectancy and rise in the nuclear family culture, it has become more important for us to save for ourselves rather than depending on our Children or the Government.
When it comes to money management, it is indeed difficult to infuse the savings habit if we are a firm believer of You Live Only Once ideology. Nevertheless, savings is important even if your mind stays more on spending rather than putting the money away for your goals. But as they say there is a solution to every problem. All you have to do is to trick your mind into savings. Here are a few tricks to nudge yourself towards th…

Before you hire a Financial Planner!

We all have access to financial advisors in the form of our parents, siblings, or some friend who keeps on reading financial blogs to help us out with our financial queries. Though this all sounds good but at some point, in our lives we do realize the importance of professional advice and tend to go searching for a Financial Planner. There are pressing questions in our mind like how much to save for our child’s education, will I run out of money in my retirement?
There is no doubt that a certified financial planner will help you chalk out your future in a better manner than any of your friends. But, the answer to these questions vary from individual to individual. Your family circumstances, lifestyle, income, expenses, etc. Though a financial planner is supposed to give advice in your best interests but sometimes you do get to meet people who are more concerned about their own interests rather than client’s and you end up owning the products you never needed. Yes, there are rules/re…