Boyce Watkins: What is FIV?

By Boyce D. Watkins

Business Editor

Aug. 3, 2007, 12:06 a.m. - What is FIV? It’s the Financial Irresponsibility Virus. This is not a real disease, so you won’t die from it. But while your body won’t die, it can certainly kill your bank account or your relationship. So, as part of my book “Financial Lovemaking 101,” I designed a test based on some of the characteristics of potential life partners who may be carrying a Financial Venereal Disease. The symptoms may not be readily noticed, but merging your assets with such a person can have you spending your life in the financial clinic.

Credit –If your credit is good, but your partner’s is not, then you both may as well have bad credit. Have your partner reveal their credit score to you with a recent report so that you know what you are getting into. It doesn’t mean you can’t marry someone with bad credit, but you’d better make sure they have a convincing plan to fix the problem.

Spending habits – watch and learn. Do they spend money the same way you do now, the way you would like to spend it, or in a way that really worries you? It’s all about trying to understand where you want to go, and then figuring out if your partner is in sync with that. You may want a partner who matches you, but if you are trying to change, you may want to seek out a person with habits that are different from your own.

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Debt levels – remember the difference between good and bad debt. Bad debt is basically anything that doesn’t give you a positive financial return, such as cars and credit cards. Good debt is more of an investment, such as a student loan or small business loan. Request documentation on your partner’s debt levels, don’t just take their word for it.

Income levels and expectations – Where a person stands today is not as important as where they are going. Finding the income level of your partner basically allows you to decide what you are getting into. Ask them to show you a check stub. Also remember that earning a lot of money today doesn’t guarantee a high income in the future. A lot of women who’ve married professional football players have found this out the hard way.

Look for warning signs – gambling, drugs, illegal activity, and other things that can lead to irresponsible financial decisions. If given a choice between a responsible partner of average means and an irresponsible mate with a high income, I recommend the partner who is consistent. Remember: Love is a marathon not a sprint, so the brother who is running hard might get tired.
 

(Dr. Boyce Watkins is a finance professor at Syracuse University. He makes regular appearances in national media, including CNN, FOX and BET. He is also the author of Financial Lovemaking 101: Merging assets with your partner in ways that feel good. His column is published here every Friday exclusively on Redding News Review. You can reach Dr. Watkins by going to www.boycewatkins.com).

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