Smart Couples Finish Rich: Step 2 Review

September 28th, 2007

Each Friday for ten weeks I am reviewing a chapter of David Bach’s Smart Couples Finish Rich. The introduction can be found here and the review of step 1 here.

This week, we’re up to Step 2 of Smart Couples Finish Rich. So far, I’ve really enjoyed the book and I’ve learned a few things about my spouse and myself, so it’s been a good read. Step 2 is “Determine the True Purpose of Money in Your Life” and that sounds like a good idea to me. Hopefully the chapter would teach me how not to have “buy stuff” the answer to that question .

The chapter basically boils down to one single concept: Creating a Value Circle. What is a value circle, you ask? Basically all it is is an interlocking circle illustrating the top five values in your life. Once you’ve listed your top five values, connect them together in a circular pattern and ask yourself: does my financial behavior match my value circle? The only trick is to make sure that the five things you write are values (like freedom, security) vs goals (get out of debt, buy a house). Once you and your spouse have created value circles you can start looking at if your financial behavior is reflected in your values.

Reading this chapter, I again learned that I don’t know as much about my spouse as I think. Not that I wouldn’t be able to fill in some of his value circle - but I’d never really asked him “What are the top 5 things you value in your life?”. I’m still not directly seeing how the purpose of money isn’t to do/have stuff, but I am a little bit getting there. My spouse and I both did the “value circle” exercise and it was harder than I thought it would be. I don’t even know as much about *myself* as I thought I did! I did complete my circle, but I’m still not quite sure it is completely accurate:

family/marriage
security
growth/fulfillment
creativity
freedom/independence

And my spouse’s:

family
security
happiness
marriage
fun

Both of these are in no particular order. And you can see, to me, marriage and family is an intertwining value but to my spouse they are separate values. And I use a lot of slashes. I’m a complicated person. I could have filled in my spouse’s I think but I wouldn’t have chosen “fun”. I think I need to let him have more fun ;).

I found creating the value circle a useful and appropriate exercise. Now to learn to have our financial goals reflect our values… but not for a few weeks yet. Next week we look at where we are currently financially because as the quote at the end of the chapter says:

..you can’t plan where you want to go until you know where you are starting from.

Stay tuned next week for Step 3: Plan Together… Win Together!