Fact: Couples fight about money twice as much as they fight about sex.*
In our lovely city of excess (but really any place for that matter) it can be easy to confuse perceived financial sexiness with actual financial sexiness. You probably know where we're going with this...
It's easy to confuse reality with perception because we've been taught that financial security looks like:
-That guy throwing his card down at the bar
-That girl showing up with the season's new "it" bag
- That couple driving a shiny new BMW
- That couple checking-in to a new restaurant on FB every night
But as it goes with the Millionaire Next Door-mantra, for those who understand how WEALTH is built, "...financial independence is more important than displaying a high social status". True financial sexiness comes from setting up a game plan that puts you on track for everything you Need, Want and Wish For.
Here are 4 more ways to beef up your financial sexiness:
1. Know Your Credit Score
There are no excuses anymore. Almost all credit card statements now display your credit score. So next time you log in online take a second to look for this number. It dictates how credit worthy you are and what kind of interest rate you'd get if you needed a loan. Planning to buy a place? Try to get your score above 750 or as close as possible for the best interest rates.
2. Have An Emergency Fund
In our experience, nothing destroys wealth faster than being unprepared. We get a lot of questions like "how much money do I need to invest?". Our questions is "have you set up an emergency fund, yet?". We won't talk to you about investing until you do. So set aside 3-6 months worth of your fixed expenses (things like rent, utilities, transportation costs, etc) so that you don't have to tap your 401(k), travel fund, other investments, etc. should a disaster strike (i.e. job loss, medical emergency). This should be your first financial priority!
3. Keep Your Debt In Check
Spending within your means isn't always possible. We get that. Maybe you're still paying off student loans. That's okay. What's not okay is making an impulse purchase on your credit card that is clearly more than you are able to pay off in full. Period. For debt like student loans, mortgages, etc., the number to know here is 35%. At any given time, your debt should be no more than 35% of your income. FYI, this number will be taken into consideration when you're applying for a new mortgage.
4. Save 15-25% Of Your Income
Yes, you have to do this. Back to good old Robert Kiyosaki:
-If you want a modest retirement, set aside 15% of your income.
-If you want an average retirement, set aside 20% of your income.
-If you want a comfortable retirement, set aside 25% of your income.
Even if you aren't able to do this yet, it's good to have these numbers in mind and be striving towards them. If you get a pay increase at work, this is an excellent time to bump yourself into the next savings category. Since you haven't had time to get used to the higher income yet, you won't miss what you never had.
We all want to live the good life and at Stash Wealth, we want that for our clients, too, but keeping up appearances more often leaves you with nothing to show for it in the end. Once couples are on the same page with their finances, we'd imagine the sex is better, too! Just saying.
*Source: Money Magazine Survey 2014