194 // Financial Infidelity
Invest In Your Life
Scale of the problem: key statistics
James cites research: 40% hid debt, 59% lied about savings, 85% hid spending at least once.
Financial infidelity is a problem that can start small but create issues of trust and ruin relationships down the line. Open, honest conversations about money are the best way to deal with spending, saving, earning, and debt in relationships. Minor omissions and lies about finances can lead to trust issues down the line. These issues start small but fester over time.
James dives into what financial infidelity is and why it happens. He talks about the consequences of hiding small things that eventually lead to more significant lies and trust issues on both sides. Most of us think of money as being about math, but we have so many emotions and deeply ingrained beliefs when it comes to money and talking about our finances.
Episode Highlights:
[03:13] There's so much baggage that comes along with money often we don't even want to talk about it with our spouses. We have shame or embarrassment that we don't want to bring out into the light.
[04:08] Money is already taboo and then inside relationships, it becomes even more untouchable.
[04:49] Anything that we're hiding from our spouse and intentionally not mentioning is a breakdown in trust. When it comes to hiding things about money, it becomes financial infidelity.
[06:39] Losing trust can start out benign. Creating doubt by not being honest can fester over time. A lack of trust leads to boundaries created to protect oneself from the person that isn't trusted.
[08:57] Hiding debt or hiding income are both products of mistrust.
[10:22] As behaviors that create mistrust get reinforced, it becomes so much harder to unravel it. This is where the resentment sets in.
[11:47] A lot of us are intentionally hiding things on a small scale.
[13:27] Intentionally avoiding open dialogue around money plants seeds of doubt.
[14:11] Money should be an easy and natural topic to talk about.
[14:33] 40% of partners have taken on debt and not told their significant other. 59% have lied about savings. 85% had hidden or lied about spending at least once.
[16:41] A lot of our dysfunction around many is rooted in what happened while we were growing up. Without open and honest dialogue, these problems won't be solved.
[18:52] It's a lot easier to have open honest conversations about money than to have to solve the myriad of problems that will happen as a consequence of hiding things.
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