| Hi Taylor
- My wife has been suggesting that we put all our money in the
same bank account. We've had our own accounts for years and I'm worried
this might create some unnecessary turmoil. What's your stance?
Hi Aaron - My stance is a firm "yes" to joint bank accounts. I
understand your angle"if it ain't broke, don't fix it." From
my perspective, there are so many good reasons to combine accounts,
and there might also be festering problems you're not aware of that
stem from keeping your money separate.
questions and doubts. Obviously, separate accounts haven't
ruined your marriage. However, storing your money in two different
places does create an invisible barrier. It clashes with the idea
of "what's yours is mine," which I think is an important pillar
of a good marriage. Practically, it puts responsibilities on individuals
instead of you and your wife as a team. Someone has to make sure
these bills get paid while the other person is in charge of those
bills. That kind of division is a breeding ground for mistakes
and blame. If all your autopayments are set to draw from the same
fund, that gray area gets eliminated.
2. Earn more. Even though you won't increase the amount
of money you bring in, you can make a lot more on compound interest
when you let your money sit together. Whether it's a savings account
with a decent rate or buying a CD or a bond, the possibilities
are a lot more appealing when you put all your money in one pot.
It's pretty simple, really: two dollars can get a lot more done
than a couple of single dollars fending for themselves.
3. Accountability. We all have good and bad habits. Whatever
your Money Personalitywhether you're a Saver or a Spender,
or a Risk Takeryou are prone to making good and bad choices
(and if you don't know your money personality, take the 3-minute
test at www.5MoneyPersonalities.com).
When you're the only one who checks in on your money, it's pretty
easy to ignore those less-appealing habits. You might even convince
yourself that those practices are wise and helpful. For example,
compulsively saving your money without investing it is not a good
financial practice, even though some people take great pride in
piling up their wealth in one place. You and your wife are there
to support and better each other, and letting your guard down
so you can talk honestly about money really elevates that conversation.
| I'm not saying
it's all sunshine and roses; there are definitely some hurdles to
overcome when you first merge your accounts. Once you work through
those issues, shared money is a great way to go. Hope it all works
Information presented is for educational purposes only and is not
an offer or solicitation for the sale or purchase of any specific
securities, investments, or investment strategies. Investments involve
risk and, unless otherwise stated, are not guaranteed. Be sure to
first consult with a qualified financial adviser and/or tax professional
before implementing any strategy discussed herein. To submit a question
to be answered in this column, please send it via email to Question@GoFarWithKovar.com,
or via USPS to Taylor Kovar, 415 S 1st St, Suite 300, Lufkin, TX 75901.