n many households, one person naturally takes the lead on managing the finances. In our case, that role fell to me. It’s what I do every day as part of my job, so it made sense.
The arrangement worked fine on paper, but it also caused a few unintended problems.
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Their Situation
My wife didn’t have a clear picture of our financial situation. She trusted me, but the lack of visibility led to unnecessary stress and uncertainty.
One day she was comparing two coffee makers. The one she liked cost twenty dollars more, but she couldn’t bring herself to buy it. From my point of view, the difference was small and wouldn’t affect our long-term plan. When you’re not sure where things stand, even small purchases can feel like major decisions.
Another concern came up when we talked about what would happen if something happened to me. She wouldn’t know where to start. Where are our investments held? How much life insurance is in place? How do we keep contributing to the kids’ education account?
Trying to Solve It
My first instinct was to get her more involved in the financial decisions. That approach didn’t work. She didn’t want to manage the finances, she just wanted to know things were going to be okay.
We kept our communication open and talked more frequently, but something was still missing. Saying everything is fine is one thing. Showing it is another.
Next, I tried building an in-depth financial model. That turned out to be overwhelming. Then I put everything into an Excel sheet, hoping it would make things easier. The result was confusing. It was just numbers and formulas without any visual clarity.
The Breakthrough: A One-Page Roadmap
Eventually, we landed on something that worked: a one-page roadmap that showed our entire financial picture.
Here’s an example using Mr. and Mrs. Smith, a retired couple in their 60s.
Mr. Smith has RRIF withdrawals of forty-five thousand dollars per year, along with CPP and OAS, bringing his income to just over sixty-three thousand dollars. He also has investments in a RRIF and TFSA totaling seven hundred fifty thousand.
Mrs. Smith also draws from her RRIF, CPP, and OAS, with income just over fifty-five thousand. Her investments include a RRIF, LIRA, and TFSA totaling six hundred seventy thousand.
Together, they have a savings account, checking account, and one vehicle. Their home is worth six hundred fifty thousand, with a small mortgage still on it. They also have a joint life insurance policy of five hundred thousand dollars.
The Result
After reviewing our own roadmap, my wife felt more confident. She could clearly see where everything was, from income sources to assets. It gave her peace of mind and removed the uncertainty.
We also decided to include the document with our will. If anything ever happens to both of us, our executor will have a much easier time understanding our financial life.
We bought the coffee maker too. That extra twenty dollars no longer felt stressful once the big picture was clear.
Final Thoughts
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