What is Income Inequality?
Income disparities or ‘Income Inequality’ is where two individuals' incomes are dramatically different and make a negative impact on the relationship. When one partner earns less than the other, it can create unneeded tension on the relationship as the higher earner might feel more important or useful as they are bringing in the majority of money.
What research tells us about Income Inequality.
In a study posted on Springer Link, it was discovered that “men who were more traditional in their masculinity ideology and have higher-earning female partners were more likely to have poor-quality romantic relationships in part because such men view the disparity in income as having importance.” Essentially, if you view having a higher earning income as important, you are more likely to be impacted by the disparity.
Does your relationship suffer from Income Inequality?
Income inequality in relationships occurs when one partner earns significantly more or less than the other. While there's no specific threshold for what constitutes a significant income gap, the tension becomes palpable when those feelings of insecurity, resentment, and guilt start to emerge.
Surprising Positives Amidst Income Inequality
Despite the challenges, there can be a silver lining if approached with the right mindset. Mutual support and setting clear priorities can emerge from income inequality. Partners may become more empathetic and understanding, actively helping each other overcome financial challenges. The key to addressing this issue lies in effective communication.
How to fix Income inequality in your relationship?
It starts with engaging in open and honest conversations about income inequality. Having an honest conversation about it without judgment or misunderstanding, allows a relationship to grow and evolve. This lays the foundation for mutual understanding and support for your relationship to grow from.
Setting Mutual Financial Goals and Balancing Finances Together
Setting mutual financial goals that consider both individuals' incomes and aspirations is crucial. Balancing finances involves identifying opportunities in the budget and ensuring fair distribution of expenses. When both partners are aware of all financial matters, it fosters increased support and empathy.
Building Stronger Relationships through Mutual Appreciation
Addressing income inequality involves sharing appreciation and understanding for one another. In a partnership, decisions should be made collaboratively, acknowledging the strengths and contributions of both individuals. Taking a spreadsheet to your relationship and crunching the numbers is not the solution. You must look at all aspects of the relationship and see everything each person is offering. While one partner might offer more income, the other might offer more services, or emotional support. Strong relationships are built on working together, supporting one another, and showing empathy.
Who Can Help Me Address Income Inequality in My Relationship?
If income inequality is becoming overwhelming, consider bringing in a financial professional like myself. With a decade of experience as a Financial Advisor and Financial Coach, I can provide personalized feedback and create an actionable financial plan to enhance both emotional and financial aspects of your relationship.
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Are you and your partner feeling overwhelmed managing your finances together? Our expert Financial Coach, Andrew Larsen, can help you take control and achieve your financial goals as a couple. With nearly ten years of experience as a Financial Advisor and having managed nearly $50 million dollars in clients assets, he can provide personalized guidance tailored to your unique situation. Say goodbye to financial stress and take the first step towards financial freedom. Schedule your call today and start your journey towards financial success as a couple!