"Finding Har-money" With Financial Therapist, Megan Ford

Am I crazy or does this winter seem to go on forever? It's been generally cold, with a few beautiful warm days; then warm for a while, with a few chilly days mixed in. The stock market acts similar at times; it will be up for a few months with some down days mixed in and then it will be down for a few months with some big up days here and there.

Much like this crazy winter, the markets had an unusually warm January (up 5.73%), but cooled off in February and March, with the S&P 500 ending the quarter slightly down (-0.76% YTD). Safe to say volatility is back thanks to the unpredictable nature of the current geopolitical climate, the Fed's plan to continue raising interest rates, and the impending tariff fiasco. 2018 looks to be another year driven by the news cycle, which at times can offer prudent buying opportunities, but the strategy remains the same: disciplined, long-term portfolio growth.

Couple housecleaning items before we get started:

• Remember to file and pay your taxes before April 17th, and don't forget Q1 estimates are also due!
• There is still time to contribute to an IRA or Roth IRA for 2017. Get in touch if you still need to do so. Max contribution is $5,500+$1000 catch up bonus for 50+

Now, for the fun stuff! This quarter, I'm excited to bring you specialized blog content surrounding how modern couples can better approach collaborative healthy conversations around their finances, budget, and goal set. This resource was jointly written by myself, Amy Hubble, founder and Principal Advisor for Radix Financial and Megan Ford, a couples therapist who specializes in relational money matters and founder of FindingHarmoney.com.

This resource is organized in three parts: (a) dispelling common myths and misconceptions, (b) a primer exercise to help get organized, and (c) a review of apps to help keep you on track.

COUPLES + MONEY

Is there anything that gets us more riled up than talking about money with our partner? According to research, it's one of the trickiest areas for couples to navigate. Fights about finances are identified as one of the leading precursors in the decision to end a marriage or relationship.

Myth #1 "We are arguing about the numbers"

Although the numbers are certainly a factor that cannot be ignored in context of money conflicts, it is typically not the root of why we find ourselves in an argument with our partner over money. When you're fighting about money, what you're really fighting for are the deeply held values and beliefs that tend to manifest as an opinion.

Myth #2 "If we don't talk about it, it will just sort itself out"

From a psychological perspective, avoidance is one of the most powerful coping strategies people use concerning money. Money isn't the sort of thing that just takes care of itself - wealth is like a garden: if you want to see it grow, it requires care and frequent attention.

Myth #3 "There is a specific way that couples should handle their finances"

There's no clear evidence indicating couples who organize their finances in one way or another are happier. What we are seeing now, particularly in younger generations, is that the degree of mixing money varies widely along a continuum.

INCREASING COUPLE AWARENESS: A PRIMER EXERCISE

Step 1: Together, write down everything you "own" and everything you "owe."

Include the following for all of your accounts: Nickname, Ownership, Location, Value, Rate, Cash Flows, Purpose, Future plans.

Step 2: Together, establish your goals

Now that you've mapped things out and become more aware of "own" versus "owe," you can start to build some financial goals.

Mint — Cost: Free

Mint is undeniably the money management app leader. Strengths: you can incorporate ALL of your household assets in one place for a convenient, high-level view. Cons: not specifically designed for couples/shared accounts; auto-categorization can be time-consuming.

Best For: Couples who want to communicate openly about the big picture or need small nudges to stay within budget.

You Need A Budget (YNAB) — Cost: $6.99/month or $83.99/annually

Award-winning software that integrates behavior change purposefully through established "rules." If you allocate $100 for dining out and overspend by $20, the app prompts you to move money from another category. YNAB makes you budget every dollar.

Best For: Couples who manage everything jointly and need serious focus on syncing spending with built-in accountability.

Honeydue — Cost: Free

Designed specifically for couples. Provides tools "to reduce money-related arguments." Offers the ability to choose whether your partner sees only your balance or transaction details. Can accommodate slush fund-like accounts.

Best For: Couples who regularly split bills and maintain financial autonomy (mix of separate and joint accounts).

Reach out anytime: amy@radixfinancial.com

Amy Hubble, PhD, CFA, CFP®