There are many decisions that can influence a person’s life. Along the same lines, there are three decisions that will change your financial life. If a person can understand this ahead of time, they will spend the appropriate amount of time on the decision and hopefully make the right one.
Who You Marry
The person you marry is perhaps the most important decision that you will make in all aspects of your life. When it comes to finances, it is difficult to live life if you are married to a spouse that does share the same values as you on finances. In fact, the number one cause of divorce in the United States today is money fights and problems. Going in to the marriage, it is important to map out how you both feel about money in general. Some people are more naturally drawn to saving, while other people are more natural givers and spenders. A marriage can work with two different financial view points, but it is vital that both people understand where the other is coming from to avoid tension.
Where You Live
Another important financial decision is where you live. There were many areas of the country ten to twenty years ago that were much more desirable than they are today. If a person decided to move to Detroit twenty years ago it would not have seemed like a bad decision. However, jobs have moved from the area and housing values have crashed. The average person in the middle class has the vast majority of their wealth inside their personal residence. This means that if housing values crash their net worth will as well. Always spend a good amount of time figuring out the location that you want to live. Although no one can predict the future, it is important to attempt to map out how certain areas of the country will look over the next couple of years.
What You Live In
Many people suffered a financial collapse in the housing recession that started several years ago. Some people decided to buy as much house as they could afford without regard to the monthly payments that they would struggle to maintain. Deciding early on to live in a house that you can afford will go a long way in helping to build wealth. Instead of being like most people, do not go out and buy a home that is going to be a stretch for you to pay for every month. The famous investor Warren Buffet still lives in the same house that he did thirty years ago. Although homes can be a great way to build wealth, this is not accomplished by purchasing one that is impossible to afford.