Focus on Finance
Are Love and Money Soulmates?
A spouse who reads The Wall Street Journal can be a great partner in more ways than you think.
By Richard J. Alphonso, JD, CPA/PFS, M.S.T.

Now that you've endured years of education, training and all the self-discipline necessary to become a high-earning professional, you probably wonder often whether there's any specific "formula" that could lead you to even more substantial wealth and greater financial independence.

Helping you to answer that question has certainly been a goal of this column. One factor we've never explored, however, is: How important an ingredient in your financial success is your spouse?

Tom Stanley, author of the best-selling books The Millionaire Next Door and The Millionaire Mind, on the other hand, has examined that question and come up with some interesting answers.

His conclusion in a nutshell: If you and your spouse are compatible in terms of your financial goals and how you pursue them, you have an excellent chance of becoming a very wealthy couple.

Scenes from a marriage

In The Millionaire Mind, Stanley suggests that couples who share common interests tend to stay married, and his research finds a strong correlation between length of marriage and net worth.

But common interests and a long marriage are not in themselves consummate predictors for accumulating wealth. As Stanley points out, it's sharing in those activities that are related to accumulating wealth that's most important. This includes preparing a household budget, planning and making investments, setting financial goals, and owning and operating a business. Stanley goes on to conclude that couples who share these interests are much more likely to attain millionaire status.

Stanley writes that he was able to determine, with a high degree of statistical confidence, the qualities of a spouse that contribute to millionaires' successful marriages.

These spouses almost always tend to be honest, responsible, loving, capable, and supportive. You can understand why these qualities make for long and successful marriages. But why do they tend to contribute to financially successful ones as well?

These are compatible couples

Stanley's research indicates that both husbands and wives who've accumulated large amounts of wealth together tend to have strong views about the factors that contribute to a good marriage. They understand the components of a lasting marriage, and they have no difficulty describing them. These couples also have a similar interest in spending substantial time involved in business or other money-making activities.

If you and your spouse make it a point to watch Wall Street Week together and if you would rather look at investment real estate than have a fling at a casino, it's a good sign that you're both on the same page when it comes to building long-term wealth.

In my many years of consulting activities, I've noticed that some of my most financially successful clients have spouses who devote as much time to the business (including medical practices) as the owner does. To them, the business represents an extension of the marriage and the household. These couples truly form what Stanley would refer to as an economically productive household.

For richer or poorer

Based on Stanley's theory, it appears possible that a correlation exists between love and money. So, as you gaze romantically at your spouse in the days surrounding this Valentine's Day, you could consider what impact -- or lack thereof -- he or she might be having on your quest for financial independence.

Richard J. Alphonso, JD, CPA/PFS, M.S.T., is president of The Financial Advisory Group, Inc., in Houston. The Financial Advisory Group provides personalized fee-only financial planning, investment management and business consulting services.