This Is the Key for a Financially Successful Relationship, According to Suze Orman
Written by
Peter Burns
Edited by
Jenna Klaverweiden
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Getting in a relationship is tough. It can be a challenge to find someone who you get along with, enjoys doing the same things as you and has similar beliefs. It gets even more complicated when finances get brought into the mix. It may not be a big surprise, but studies have found that financial stress results in less relationship satisfaction.
Suze Orman, financial advisor, author and host of the “Women & Money” podcast, addressed the topic of money and relationships in a recent podcast episode. Here are some of her thoughts on how to make sure your finances contribute to a successful relationship.
Also see seven money issues that can lead to divorce.
Transparency
Orman pointed out that 50% of marriages end in divorce, and financial disagreements are the leading cause. Major reasons for financial disagreements are a lack of transparency and bad communication. Studies show that couples who openly discuss their finances avoid conflict and have reduced tension.
Communication is important in relationships for many reasons, including guaranteeing that you and your partner are financially on the same page. In a relationship, transparency is a must. Hiding purchases and expenses from your significant other is a recipe for failure.
Respecting Roles
According to Orman, the next biggest problem after a lack of transparency is keeping track of each person’s finances. Many couples subscribe to the idea that whoever makes the most money in the relationship also has the most power. This line of thinking can lead to arguments in which one person will remind the other who pays the mortgage or puts in more hours at work.
Allowing the person who makes more money to make all of the decisions may not be best for the relationship. Orman explained that in her relationship, she makes more than her partner, but her partner is much better at making decisions and, in turn, has more power than she does. A successful relationship means knowing what role you need to play. For Orman, that’s making money. For her partner, that’s making confident decisions.
Know Each Other’s Financial History
Being open about your financial histories is vital for success as a couple. When a relationship begins to get more serious, it’s important to be on the same page regarding finances. “You need to be as intimate financially speaking as you are personally with your spouse or your partner,” Orman said.
One especially important area is debt. If your partner has large amounts of debt and you’re unaware, or vice versa, it can be detrimental to a relationship. If someone is in debt, it’s important to be open about it and determine how you will work together to develop a financial plan and get out of debt.
When Orman first met her partner, she wasn’t afraid to ask difficult questions. Orman asked questions like these:
- How much money do you have?
- How much do you owe on your house?
- Do you have a car? And if so, are you leasing it?
In order to have a successful relationship, you and your partner need to have a clear idea of each other’s financial history.
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