Merge Finances to Build Incredible Wealth

Merging your finances with your spouse can dramatically increase your ability to build wealth and reach large financial goals faster.

What I mean by merging, I’m saying:

• All incoming money starts as shared.
  Every paycheck from both spouses are deposited into one joint checking account. This also includes income from side gigs and garage sales. Both see what’s coming in and make saving and spending decisions together.

  • And don’t worry - both spouses can have separate accounts as well.
    If some financial independence is important, each person can have a separate checking account, but all incoming money starts in the shared account and is transferred to each individual account as agreed.

• Consumer debt is shared.
  Credit cards, medical debt, student loans, car loans, or any other type of consumer debt, regardless of whose name they’re in, are considered joint responsibilities. Consumer debt is detrimental to wealth building regardless of how it got there. Once both spouses agree on this, the couple should stop taking on new debt, pay them off as fast as possible, and be done with them for good, together.

• Strategic debt is shared.
  This refers to debt that also creates wealth, like a mortgage, and should be in both spouses’ names. That includes being on the deed and loan, so both benefit from the home’s equity while paying off the debt faster, together.

• Big savings goals are shared.
  Think of vacations, a new primary home, a new home to rent out, home renovations and big repairs: these are joint priorities and should be saved for together.

• Small individual goals are respected.
  This is incredibly important for couples that want some financial independence while agreeing to merge finances. If one spouse has a personal goal the other doesn’t share, you can still agree to fund it from the joint account and transfer that money into a personal account.

• All wealth-building assets are shared.
  Retirement accounts, brokerage accounts, real estate equity; all should be viewed as a joint endeavor, and both names are on the accounts.

For many couples, merging finances can feel like a stretch, especially if there’s a history of mistrust or financial stress. But when you manage money together, your capacity to build wealth is significant. I strongly consider merging, because you can:

• Save more, faster.
  If not merged - $5,000 individual income at 10% savings = $500/month
  Merged - $12,000 combined income at 10% = $1,200/month

• Avoid costly financial mistakes by making decisions as a team.

• Grow your wealth faster through shared investing and compound growth.

• Buy a home and pay it off faster, together.

• Build strong retirement savings that secure both of your futures.

• Free each other up to pursue new careers, education, or side income without financial stress.

Review a simple checklist to begin understanding what it means in practicality to merge finances.

Also, check out these 9 steps to building wealth as a couple.

Reach out if any questions come up and I’ll see how I can help.

justin@wealthandwisdomcoaching.com

360-230-8562

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