Smart Couples: Value Circles
My wife and I recently resumed reading Smart Couples Finish Rich. I have been pushing for the two of us to read this book to help us talk about and begin better financial planning for the two of us.
The book basically starts out by asking you to identify the purpose of money in your life (Value Circles). My wife and I read the description with examples given in the book and then each of us quickly jotted down our top 5 values.
My List of Values
My Wife's List of Values
It provided great insight as to why we sometimes disagree about money. After we discussed it, my need for security (ie enough money to pay the expenses now and in future) played a big role in the conflict. I feel the need to save as much money as possible to prepare for the day when we really it. My wife wants to feel comfortable, as well as to save. Therefore, she wants to spend a small portion of the money on those things that make her comfortable.
My wife now knows that everything is a tradeoff against security/financial freedom for me when we spend money, and I know that my wife wants to sometimes make small financial tradeoffs to feel more comfortable.
A even greater benefit from this exercise was the common values that uncovered and could focus on - family, marriage, freedom, and making a difference. I hope this could help us build some common plans for the future.
Related in Personal Finance Books:
Four Hour Work Week Book Review (Dec 06, 2010) When the 4-Hour Workweek came out back in 2007 with a lot of buzz I was interested in taking a look. However I was off to China on my international assignment and getting married so reading the 4 Hour Work...
The Big Short Book Review (Sep 23, 2010) I just finished reading Michael Lewis' latest book The Big Short. The book delves into the lives of 3 groups of small time money managers that were able to see the coming collapse of the subprime mortgage bond market...
Stop Acting Rich Book Review (Mar 17, 2010) Back when I was in college a department head gave me a copy of The Millionaire Next Door as a thank-you gift for a project I helped with. This book had a profound effect on me at the time...