My wife and I have an agreement that we can each spend $ 500 a month as we wish. We have emergency savings, we both contribute to our retirement accounts, and we have savings plans for our two children.
I recently started using my $ 500 to invest in Bitcoin and my wife is furious. She hates Bitcoin because I lost money on it a few years ago. But I didn’t jump back in until August and I’ve already tripled my money.
If we can spend our money as we want, am I not allowed to invest in Bitcoin? She wasted money buying too many clothes and doing DIY projects that would have been cheaper just to pay someone else to do it. I never complained because it’s their $ 500.
Should I keep investing even though my wife hates it?
I am torn. If the two of you agreed that you could spend $ 500 each month as you like, that means you can blow it all up on Bitcoin if you want. But I’m with your wife because I really hate Bitcoin.
I’ll save you a long joke, but what I’m going to say is this: when you invest in a stock, you are buying a stake in a company that will hopefully produce something of value. This is not the case with Bitcoin.
Forget the talk about it being the payment method of the future. Only about 2,300 companies across the United States accept this. Its wild price fluctuations make it useless as a currency. For only the first eleven days of 2021, Bitcoin soared to a record $ 30,000 on January 2, then over $ 40,000, before falling 25% over the next 48 hours. Imagine the US dollar lost 25% of its value in 48 hours. As longtime crypto critic Warren Buffett said, “You can’t do anything with it other than sell it to someone else, but then that person has the problem.”
It’s okay if you disagree with me. You can’t even agree with Warren. But I would urge you not to take action against your wife if she is really against it.
Your problem here is much bigger than Bitcoin. They say you can spend $ 500 each as you like. But you don’t do that Really Do you mean this?
You are okay with your wife’s decision to use her discretion to purchase clothing and DIY supplies. This is not how you would be spending your money. Hopefully these purchases bring your luck, so you are money well spent.
Now, let’s imagine that your wife has chosen to burn her money every month just because it’s her money. You would certainly not agree with that. This is money you both made. The targeted spending is a sign of respect for one another.
I understand: you don’t do that here. You spend money on Bitcoin because you think it will make you more money.
But your wife has seen you place a losing bet on Bitcoin before. I wish I knew more about the circumstances there. Was the money you lost limited to your personal budget or did you put a significant portion of your family’s fortune into this extremely risky investment?
Regardless, it must have been stressful watching your money evaporate a few years ago. When we are under pressure, we tend to put stress on the people around us. Even if your losses were limited to your pocket money, you shouldn’t pretend your wife and children weren’t affected when you made a losing bet.
It is clear that it is time for you and your wife to lay down a few ground rules for how you will each spend your $ 500. Try to talk about your goals when you decided to spend money on each of you. I suspect it was giving each spouse permission to spend on something they enjoy. If you’re really passionate about Bitcoin, you can likely get the case back to your wife. But I suspect your main driver here is your desire to make money quickly.
I think it’s good that you have a budget that includes personal expenses for each of you. What you need is a right of veto. You should avoid criticizing how the other spends their $ 500 in general. If either of you wants to spend money in a way that the other spouse really finds uncomfortable, you agree that it is forbidden.
Bitcoin returns are extremely fickle. But the cost of going against your wife’s desires each month is predictable and incredibly high. Do you remember the saying, “Happy woman, happy life.” You are far better off investing your $ 500 into a new hobby.
Robin Hartill is a certified financial planner and senior editor at The Penny Hoarder. Send your tricky money questions to [email protected].