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Created on: September 23, 2008
On a figurative level, the economics of love and marriage may not be as complicated as you'd think. In business, the general rule of thumb is to abandon ship when the cost outweighs the profit. Relationships experts have discovered that most people treat relationships the same way.
We may not ask ourselves, Does my relationship cost more than it's worth? But at one time or another, we've all made the pro/con list for someone we weren't sure about. When we're torn, we often simplify things to make our decision easier. We can all relate to this economic principle, that most of us use in everyday life. When you know the benefits of those Manolo Blahniks you want will only add up to 1 or 2 debuts because you don't have the outfit to match, the cost of $800 just doesn't seem worth it, the cost outweighs the benefit.
People break up when the cost of the relationship outweighs the benefits, when the sacrifice isn't worth the reward, when you're putting in more than you're getting back, when the emotional investment isn't being returned, etc. etc. As far as relationships go, the give and take scenario is almost like a barter system of love. You may have given your love and support but are still waiting for the trade off, and if this was the barter system, you just got robbed.
In a more literal sense of economics in relation to love and marriage, new studies have actually revealed that couples who have similar financial values and similar long term budget plans have better relationships. Yes weddings are expensive, kids cost a lot of money, the mortgage, the bills, etc. But when couples share the same monetary priorities, theses financial stressors won't put a wedge in their relationship.
Do not confuse this with the idea that having money makes everything easier and turns love into a fairytale. No matter what the amount, if you and your spouse/significant other disagree on how your money should be spent it puts a strain on the relationship, and ultimately your feelings for each other. And don't kid yourself, when there's more money to spend there are more opportunities to disagree.
This is not to say that on your second date you should request a fiscal plan for the next 10 years, but when you are considering spending the rest of your life with someone it is something to keep in mind. What is important to you? Could you be with someone who lives frugally in order to splurge on nice vacations and big purchases? Do you want to indulge yourself and worry about a rainy day when it comes? How do you feel about a pre-nup? People have millions of ideas about money, and people who have similar opinions tend to be happier in relationships.
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