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February 08, 2022

Financial mistakes we make when blinded by love

When you’re in your twenties or thirties and measuring the seriousness of other couples, there are generally four key milestones they hit.

Istockphoto_11778293-valentine-heart-shape-made-by-dollars-isolated Maybe they move in together: pretty significant. Maybe they get engaged: important stuff, no doubt. Maybe they even decide to have a kid: hey, now we’re getting somewhere.

The fourth step, though, depending where you stand, might be the diciest: they join up on a bank account. Uh-oh. It might be fine for you and your significant other, but there’s no denying that intertwined finances can be catastrophic if your relationship ever goes the way of Ronnie/Sammi “Sweetheart.” And perhaps it’s just one of many financial miscues we make in the name of love.

Yes, as Valentine’s Day nears just in advance of tax refund season, it may be time to count down the money mistakes we make when blinded by love. It’s a feature TheStreet.com came up with, and it’s a great idea.

Their top five:

1) Co-signing a loan
2) Paying their bills
3) Dragging in family members (into going in on a loan)
4) Moving too fast (essentially, the bank account example mentioned above)
5) Not having an exit strategy (cough, prenup)

Certainly, we may not need to look any further than some of the most expensive celebrity divorces to realize the financial consequences of love-gone-wrong. But there are plenty of mistakes – again, depending where you stand – regular Canadian couples make with their cash, such as joining up on a credit card, which many money managers advise against.

What financial miscues do you see people making with their hearts, maybe not their heads?

By Jason Buckland, MSN Money



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Gordon PowersGordon Powers

A long-time fund company executive, Gordon Powers now heads up the Affinity Group, a financial services consulting firm. Gordon was a personal finance columnist for the Globe & Mail for many years, has taught retirement planning...

Jason BucklandJason Buckland

The modern-day MC Hammer of money, Jason can often be seen spending cash that isn’t his with the efficiency of a Wilt Chamberlain first date. After cutting his teeth as a reporter for the Toronto Sun, he joined the MSN Money team with...