7 Signs Your Man Is Financially Stable!

1. Starts Savings Early

First, a man who is great at personal finance management have the awareness to start saving from an early phase as an emergency fund, buying house and retirement. Not like others, they do not wait till they have a high salary to start saving up.

This is because they know that commonly, higher month salary means higher monthly commitment as well. Hence, there will never be an ‘extra money’ to be save.

2. Savings Before Spending

Quoting Warren Buffet, “Do not save what is left after spending; instead spend what is left after saving.” A man that is financially stable and good at financial management always hold on to this words.

They will divide a sum for savings first before spending money on shopping but not to the point of affecting their necessity and burdening their life. Here are 10 financial tips every working adult in Malaysia should know.

Of course they will set a fixed monthly budget depending on their situations. The simplest rule that they might follow is the 50:30:20: budgeting ratio where you divide 50% of your money for necessity, 30% for wants and 20% for savings.

3. Knows his “Wants and Needs”

Third, guy who is financially stable and financially literate would know how to keep his priority straight in spending and have a control of his wants. They set a solid ground between wants and needs and they are not easily swayed by the rapidly changing trends of owning luxurious items just for showing off on social media.  

Avoid dating a man that have ‘the celebrity’ personality which they make a habit of buying in haul to make a statement of his ‘wealth’ and put it up on the social media. Try to identify this kind of man in the talking phase or the early phase of the relationship. One of the way that you can try is by casually having them take the money personality quiz to know their financial management style.

Financially stable man does not spend money only to show off but to meet his needs. For example, purchasing car. they will list down the main features and specification of the car that they need and suitable with their budget before purchasing a car.

For example, for a single man or a man with a small family, it is enough that they own a sedan that is cheaper like Perodua Axia or Myvi. As long as the backseat can fit the children car seat. The purpose of them purchasing a car is for necessity and not because of his wants.

4. Does Not Bit More Than He Can Chew

The fourth traits of a financially stable man that you should look out for is spending money not more than what they can afford. They are not easily influenced with others lifestyle that is more luxurious. They prefer to be more lowkey and private with their lifestyle.

They focuses more on budget planning. They make monthly budget planning as a habit and always aware of the in and out cash flow. 

This is because small expenses might seem like a small matter but it can derail the whole fixed budget planning. Hence, they will never take up loans just to be luxurious especially with bad debt (NAK INTERLINK BAD DEBT) like credit card loan and impractical expenses.

5. Smart Investing

Financial managemeny does not only focus on the saving aspect. Warren Buffet also suggested everyone not to only depend on one source of income but also to start investing.

Futhermore, man who is financially stable and good at managing money will also devide a sum of his savings for investment. If the investement is well planned, they might receive twofold of the sum that they invested.

Financially stable man will not rush in head first into an investment just to get a fast cash. But they are smart and calculative in dividing the risk of their investment.

6. Maximizing Income Tax Return

The sixth traits of a financially stable man has a close relation with income tax. In general, the purpose of income tax is lessen financial burden for those who still have elderly parents and children that go to school.

However, most people does not know that they can maximise their income tax return by investment planning. Only man that is good at financial management will not miss out on this golden opportunity.

Some of the investments that are tax exempted are full on health check- up, EPF contribution, premium life insurance, Private Retirement Scheme (PRS), as well as health and education insurance.

For Muslims, by paying for zakat, you can get tax rebate. Different from tax exemption that have the maximum limit, tax rebate on other hand is given out depending on the amount of zakat that you pay.

7. Will Drafting 

One of the traits that you can never turn a blind eye to is a financially stable man will always make a preparation for the ‘exit strategy’. Any living being will surely meet their end. A man that is financially stable and smart at financial managment will make sure that all his collected assets have a will nominee.

Property division planning also can be done with other alternatives like will, waqf, grant, marital property declaration and the appointment of trustees. this preparation includes the remaining debt.

To sum it up, they will manage everything will they are still alive so that it will be easier for the heirs in the future, especially for those who already have their own offsprings, out of wedlock child, breastfeed child (anak susuan), a man with more than a wife with no male heirs.

Therefore, they believe that they should prioritise this matter. Financially literate and financially stable man will not let his loved one goes poor and suffer when their asset is froze because of their recklessness.

Financial Literate Builds a Greater Future

Do not worry if your future husband or your potential partner still does not own all 7 traits of a financially stable man. What matters most is the awareness to plan for a better future.

However, you need to understand that every individual have different priorities in life. So, discuss with them on your future financial planning that best suited your situation. Every small steps in the right direction counts.

This is better than those who aims for the big goals from the starts then give up halfway through. Long- term consistency trumps short- term intensity!

Watch our video to better understand!

How to Avoid Money Arguments with Your Spouse

There are many reasons why marriages do not last. Infidelity or cheating on the spouse is the most common ground for separation. Lack of communication, lack of affection and failed expectations can also lead to break ups. However, money arguments is the leading cause of divorce in Malaysia.

Quarrels over money can have a tremendous effect on a relationship which could lead to divorce. But the problem is not over after the separation. The effect could extend to the immediate family members especially the children.

5 Ways to Avoid Money Arguments with Your Spouse

1. Find the Right Timing 

There is always a time to discuss money matters with your spouse. If you have an issue to raise such as useless spending or rising credit bills, make sure to find the right moment to discuss with your other half. Start the conversation when things are relaxed. Your spouse will be more receptive when you are expressing genuine concern in a calm manner.

A hostile approach would only put your spouse on the defensive mode. Money issues will not resolved through heated discussions. The important thing is to settle the issue without creating anger and resentment.

2. Be Willing to Compromise

Everyone’s behaviour towards money is different. If you are thrifty, do not expect your partner to be the same. But spouses can always align their individual spending patterns to create a balance.

If you are the breadwinner, you do not have absolute control of household spending. Your spouse is there to correct or limit your spending whenever necessary. Marriage is a two-way street. Partners should be willing to compromise for the good of the relationship.

3. Be Honest

If working couples share the cost in a household, there should be honesty in all financial matters. For example, before getting a personal loan or making an expensive purchase, let your spouse know beforehand.

Any major spending or borrowing should be a collective decision. It is better to discuss first whether the purchase is necessary or if any of the existing loan is a bad debt. When bills pile up, it could lead to a blame game. That could be the start of future arguments over money. Honesty is the best way to preserve a marriage.

4. Joint Control of Spending

Couples can stay happy in a relationship much longer if they are in full control of their spending. That is why setting a mutual goal is important. Both partners should participate to do the financial planning together.

Talk about your finances like income, expenses, mortgage, savings or anything that concerns money. Prepare a budget and resolve your concerns by following the discussed plan. It does not matter if only one spouse is working because couples share the financial burden together.

5. Plan Together for the Future

Finally, couples who want to be together until the sunset years need to look ahead into the future. If partners plan together for retirement, there would be less fighting over money. Both spouses would then be conscious about their spending. They will be focused on saving and investing to secure their financial future.

Generally, arguing over money is natural between married couples. But it should be handled properly. Otherwise, a disagreement could explode into a bigger problem until a partner ends the marriage. Follow the above stated ways to avoid an argument with your spouse on money if you want to enjoy marital bliss for years.

Should Couples Split Their Bills and Expenses?

Generally, you might expect couples to pool their money together and jointly manage it. In reality, however, some couples may prefer to keep things separate due to differences in spending habits and considerations.

Nonetheless, couples should compromise with one another and seek out ways to arrive at a method that works. Otherwise, it might lead to a divorce or separation because of disagreements over money. Here are some of the way you may consider on how to better manage your bills and expenses with your other half.

1. Give and Take

Money is a sensitive issue in a marriage or relationship. In a two-income household, each one has the responsibility to pay and save. The usual costs are mortgage or rent, utilities, phone bills, groceries and other necessities. Dividing the expenses by 50% is the most simple and easy way.

Unfortunately, splitting the expenses by half is unfair to the individual who is earning lesser than the other. In this situation, the element of giving and taking should prevail. Sharing can be proportional to how much each one earns.

For example, an individual earns RM6,000 monthly while the partner brings home RM4,000. The one receiving more will contribute 60% while the partner making less will contribute 40%.

If this is the desired set up, both partners can maintain separate accounts and open a joint account for bills and expenses. Individual contributions are then deposited to the joint account for payment of bills and expenses. The balance of the money will remain in each other’s account for personal needs or wants.

2. Complete Transparency

Regardless of who earns more, some couples prefer to have one joint account for the purpose of complete transparency. All payments for expenses, as well as savings, come from a single account. But in order for this method to work, you need to fully trust each other 100%.

This setup means the couple will have to agree on a shared financial goal. No partner blindsides the other when it comes to spending, using credit cards or obtaining personal loans. There will be full disclosure when it comes to everything.

3. Entirely Separate

An arrangement that somehow strays from the norm is when couples do not want to combine their finances at all. Believe it or not, some couples prefer two separate accounts. In some cases, some individuals prefers to maintain freedom and autonomy when it comes to personal finances. The reason can be due to high personal debts or even family inheritance.

This approach means each partner pick specific bills to pay. One negative outcome is that if your partner is not good at money management, you might end up paying the bills he or she is supposed to pay.

4. One Money Manager

This approach happens when one partner is significantly better in handling finances and the other gives up the management responsibility. Hence, there is still a joint account where the money comes in, although only one takes care of distributing them. Also, the non-manager will agree to receive a monthly allowance.

Trust is again vital if you decide to let go of your freedom and let your spouse or partner handle the finances. But it does not mean you do not have a say in making financial decisions.

Don’t Let Money Destroy your Happiness Together

In general, money disagreement is the number one source of conflict between couples, not only in Malaysia but the world over. Many marriages and relationships break down because of financial matters.

If you want to keep a healthy and lasting connection, be open to engage in constructive discussions with your partner regarding money. Couples should arrive at a workable solution that will stand the test of time.

But the more important aspect of living happily ever after is to agree on specific ground rules, including saving and investing for the future.

This article is written by Direct Lending –  An online personal lending platform that provides bank and koperasi personal loan as well as licensed moneylenders personal loan. We can help you find, compare and apply personal loan that best suits your financial needs. Check your eligibility for free, no upfront payment or processing fees and get a loan rates from 2.95% p.a. or 2 working days.

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