Question:
I know I need to save for retirement but my husband just refuses to save and money burns a hole in his wallet. How can I get him to stop and think about the consequences? It causes a lot of stress in our marriage.

Answer:
A spendthrift will think nothing of laying out R30 a day on gourmet sandwiches for lunch. They will tend to want, rather than need every new gizmo on the market and they never look at the big picture. They will accuse you of worrying too much about the future and recommend that you must live for today.

What is often needed to jolt someone into reality is a graphic picture of what retirement will look like on a measly income. In order to move forward, they have to understand the consequences of their actions.

So the first step to steering your partner in the right direction is to scare him or her senseless. Ask a good financial advisor to work out how much money you will need to save in order to retire with the same lifestyle that you currently enjoy. This alone will cause a few beads of sweat.

Then add up all the money he or she currently wastes on 'I want' items. Let's look at that lunch habit: R30 a day is R600 per month. Now if he took a packed lunch, he could easily save R500. This invested for 10 years could yield around R115 000 ? not bad for giving up a few loaves of crusty bread.

To convert a spender, you need them to set specific goals for their money. It is very hard for most people to save money just for the heck of it.

The following goals work well:

  • To clear all short term debt in 18 months.

  • To set a weekly budget and stick to it.

  • To save all the money you used to spend on junk food for your kid?s education.

  • To pay cash for your next car.

  • To pay off your bond in the next five years.

  • Or to save a deposit for your new home.

If all else fails despite persistent pleading, you may want to sign up for a money management course. It is worth so much more that the fee you pay. Hearing the information from an 'expert' third party on the subject is sometimes all that is needed to change a spendthrift?s views; in fact it?s a wake up call.

But beware: there is no one more zealous than a reformed spendthrift! You may find it embarrassing when they are still wearing those bellbottoms and thick rubber soles.