Do you disclose every financial detail to your wife? If you do not share your expenses and investment information with your wife or partner, then it is considered ‘Financial Infidelity’. When partners do not inform each other about their assets, loans, expenses and earnings, it creates a rift in the relationship.
In this era of Covid crisis, hiding financial information can be even more expensive. The sudden death of an earning member can leave any family vulnerable.
“Partners must be aware of not just the income sources/amount and expenses, but about where exactly every penny is invested, who all has money been borrowed from, what kind of insurance is in place and most of all, why these financial decisions have been taken. Additionally, it’s important to be in touch with your adviser, CA or lawyer. Some couples prefer not to let these topics “come between them” but these topics must be right in the middle of a relationship, ensuring that both partners are aware of what they have and where they stand,” said Mohini Mahadevia, financial advisor
According to Amit Kukreja, SEBI Registered financial advisor, examples of financial infidelity can include hiding existing assets, debts, excessive expenditures without notifying the better half, and lying about the use of money.
“Financial infidelity can create tension and difficulty in relationships that may lead to the end of the relationship if not corrected. The best way to rectify financial infidelity is to come clean about it and perhaps discuss the issue with the partner with or without counselor. Creating monthly budgets and being transparent about expenditures will also help,” he said
He added that excessive spending and lying about it may be symptoms of deeper issues that are worth exploring with a financial health professional.
1) If both earn, both should know how much salary someone has. What benefits are available through different components of salary.
2) If only the husband works and the wife is the house wife, then it becomes more important to give every investment information to the wife. According to Kukreja, it is a common mistake in India that men bear the entire cost of investing money. This is a big mistake.
3) Whether the woman is a working professional or a housewife, every month both of them should sit and make a budget for household expenses.
4) Know whom the agent / company will have to talk about the insurance policy information, policy document and claim.
5) Whether the investment is in FD, mutual fund, gold, or cryptocurrency – keep records of everyone.
6) If there are no joint holders in the bank account, then give the name of your partner in the nominee and tell them how many accounts are there and how much money is there.
7) If there is a loan, then share the record of the documents related to it.
8) Both should be aware of the goal for which you are investing.
9) If you are taking advice from financial advisor, then your partner or wife should has his/her name and number, alongwith workplace details and contact details of insurance agent.
So, keeping these nine things in mind, bring transparency in your financial life.
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