Marriage and Money: The Talk That Might Save Your Relationship

There is much debate about the claim that half of all U.S. marriages end in divorce. Even if that statistic were half wrong, that would mean that one in four couples would divorce. Money problems remain among the top reasons for divorce in America. A couple’s financial compatibility and money goals will have a profound effect on their marriage. Whether you are planning your wedding or have already tied the knot, it is time to have a heart to heart about your financial game plan. I have compiled the advice of a few popular financial experts to jumpstart the money talk with your sweetie.

The Dave Ramsey Plan: Dave Ramsey, author, radio host, and television personality is well known for his disdain of debt. He has a particular distaste for credit cards. The official Dave Ramsey website notes that people spend more when they use credit cards, and according to the American Bankers’ Association, the average family today carries $8,000 in credit card debt. Dave is no fan of the FICO score, which he calls the “I love debt score.” While Dave would like for everyone to pay cash for a home purchase, he recognizes that not everyone is willing to wait that long. According to Dave, homebuyers should save a down payment of 20% or more, choose a 15-year (or less) fixed-rate mortgage, and limit their monthly payment to 25% or less of their monthly take-home pay. Dave also encourages people to invest 15% of household income into Roth IRAs and pre-tax retirement. For more information on Dave’s financial “baby steps”, including emergency fund savings and college savings, visit Dave’s website or check out his advice on Oprah.com.

Snapshot: Avoid all forms of debt, choose Roth IRA for retirement savings, pursue a zero FICO score, and pay off home mortgage as fast as possible.

The Suze Orman Plan: Suze Orman, nationally acclaimed money expert, author, and television personality, is all about people taking charge of their financial life. Suze recently announced that she has changed her advice with regard to credit cards. With the rise in unemployment, she says to only pay the minimum due on your credit card balance and instead make it your top priority to build as much of an emergency cash fund as you can. According to Suze, homebuyers should strive for a 20% down payment. If that is not possible, they should roll the cost of private mortgage insurance (PMI) into their primary mortgage rather than pay it as a separate cost and instead of getting a piggyback loan. For retirement savings, Suze recommends contributing to your 401(k) up to the company match and then contributing additional retirement savings to a Roth IRA. For more information, visit Suze’s website or check out her advice on Oprah.com.

Snapshot: Only use good debt (i.e. education, mortgage), choose 401(k) and Roth IRA combo for retirement savings, pursue a high FICO score, and pay off home mortgage as fast as possible.

The Robert Kiyosaki Plan: Robert Kiyosaki, motivational speaker, businessman, and author, encourages people to turn debt into an asset. He loves credit cards for their convenience. Robert has been known to say a house is a liability rather than an asset. He is a big advocate of using real estate to increase wealth. In the top selling Rich Dad Poor Dad, Robert outlined a plan of investing in real estate for cash flow and selling properties for a profit. When it comes to retirement savings, Robert bucks conventional wisdom. He refers to the 401(k) as the “biggest scam ever.” For more information, visit Robert’s website or check out his column on Yahoo Finance.

Snapshot: Use debt as an investment tool, avoid 401(k) and opt for business and real estate investing for retirement savings, keep a high FICO score, and do not rush to pay off home mortgage.

Clearly a union among any of these experts would result in a financial marriage from hell. Give your relationship a fighting chance by discussing your money beliefs and goals. Otherwise, you might be setting yourselves up for a “Suze smack down.”