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"Love Can Pay the Bills"

By: Trevor Roberts, CFP

Every February St. Valentine graces couples with yet another gift-giving holiday. This leaves most of us searching endlessly for a gift that would make Cupid proud. But one of the best gifts you can give your sweetheart, and ultimately your relationship, is a good old fashion heart-to-heart — financially speaking that is.

As the old saying goes, "love doesn't pay the bills". As a Certified Financial Planner (CFP) professional, I am hardly a relationship guru. But I can offer one solid piece of advice. Spending some time with your significant other discussing your financial goals and developing a financial plan can have a profound impact on the health of your relationship. It is no secret that financial strain is a leading cause of relationship failure. However, with some prudent planning such strain can be avoided — and the bills will get paid.

Identify your goals

The first step in developing a financial plan is identifying your financial goals. Couples, here is where that heart-to-heart comes into play. Taking the time to define and negotiate realistic short, medium and long-term goals together will prepare you for putting a sound financial plan into action. Gentlemen, I am not recommending this as a Valentine's Day date. But consider it sooner than later. Depending on the stage of your relationship, now is the time to discuss things such as retirement, children's education, buying a home, purchasing a vehicle, and even estate matters. It is also important to associate a monetary value and time frame with each goal. For example, you may wish to both retire and age 55 with a combined income of $60,000 in today's dollars.

Think CFP professional

Once you've spent some time communicating ? see, your relationship is already improving ? you may wish to seek the help of a CFP professional to help you develop a written financial plan. Your planning professional will listen to your goals, help you prioritize them, and prepare an action plan to help you reach them. Your planner can also assist you in areas such as budgeting, investment strategies, taxation, and estate planning.

Once your goals have been determined and an action plan is in place, you can then arrange your financial affairs to ensure these goals will be met. Your financial plan will outline a systematic approach to saving for individual goals, cashflow, budgeting, and any necessary changes to your existing financial situation. It is this crucial step in the financial planning process that will soften life's financial "surprises". These are the "surprises" that can challenge the strength of your relationship.

By taking a proactive approach to the health of your finances, you will be giving a significant Valentine's Day gift to your relationship. That's something chocolates, roses, or even Cupid can't provide. Communicating your combined financial goals to each other is an important part of the financial planning process, and with the help of a CFP professional you can plan to reach them.