MONEY
FINANCIAL FITNESS TA K E P R I D E I N A H E A LT H Y R E L AT I O N S H I P W I T H YO U R M O N E Y !
Ellen M. DeSarno CFP, CLU ChFC, ADPA FACT: Lesbian households earn 23% more than the average American household, according to a 2012 to 2013 Prudential Research study. LGBT households also may have more “discretionary” income than the average American household because fewer of them have children. So why do you always feel broke? It may be that you have an unfulfilling relationship with your money. WITH PRIDE UPON US, NOW’S A GREAT TIME TO TAKE STOCK OF YOUR AND YOUR PARTNER’S FINANCIAL HEALTH. HERE ARE A FEW TIPS: 1. KNOW YOUR “TYPE.” Are you a saver or a spender? In a relationship, two savers may appear a bit boring, but are more likely to achieve their financial goals on time. A. SAVER PLUS A SPENDER? This is a common combination. Opposites often attract. B. SAVER/SPENDER MIX? Relationship can work with full disclosure and cooperation. C. TWO SPENDERS? Can be a recipe for financial disaster if not managed properly. 2. TALK REALISTICALLY ABOUT MONEY BEFORE YOU MOVE IN TOGETHER. It’s remarkable to me how many partners are in the dark about each other’s salaries and spending habits. Having this money talk may be easiest with a financial professional to keep the information exchange on track. 3. SHARE EXPENSES 50/50 WHENEVER POSSIBLE. Be mindful that inequality can breed resentment and control issues.
4. DO NOT SHARE DEBT, OTHER THAN A MORTGAGE OR A HOME YOU ARE PURCHASING TOGETHER. If you need a cosigner for a car or other credit, it probably means you are trying to buy something that is mathematically out of your league. 5. MAINTAIN HEALTH INSURANCE. Explore all options with your and your partner’s employers and associations first. If you are self-employed or unemployed, at least purchase “catastrophic” coverage, where you pay for the little things up to a higher deductible, but you’ll have limited liability in the event of a large hospital bill. Uninsured medical expenses can cause debt and even bankruptcy. CBS news recently reported that the average cost of an attack of appendicitis, for example, is $28,000! 6. HAVE AN “EMERGENCY FUND.” Calculate six months of your bills, and strive to keep this amount in an account you can access without penalty. This goes miles toward building wealth versus digging yourself in a hole in the event of an unexpected expense.
M O ST P E O P L E D O N ’ T P L A N TO FA I L . T H EY FA I L TO P L A N . TA K E P R I D E I N YO U R P L A N .
Ellen Desarno is a Certified Financial Planner at AXA Advisors. She joined the company in 1990 and has been helping clients set and work towards achieving their financial goals for over 20 years. Ellen writes a monthly advice column for Go! Magazine entitled “Financial Fitness.”
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Ellen M. DeSarno, CFP®, CLU, ChFC is a registered representative who offers securities through AXA Advisors, LLC (212-314-4600), member FINRA/SIPC and an agent (CA Insurance Lic. #: 0H44952) who offers annuities and insurance through AXA Network, LLC, (AXA Network Insurance Agency of California, LLC; AXA Network Insurance Agency of Utah, LLC). AXA Advisors and its affiliates and associates do not offer tax, accounting, legal counsel or any related advice or services. This article is intended for general information only, and AXA Advisors and its associates offer no guarantee as to its accuracy or timeliness. You should consult with qualified and appropriately tax professional and legal counsel regarding your needs, questions and particular circumstances.