We all have different approaches to saving money. When two people join together via a marriage, they agree to share their finances, in one way or the other. Most couples promise to be together for better or for worse, and for richer or for poorer, but in today’s world, many couples aren’t able to tolerate each other for richer or for poorer. The reason for the failure to keep their promises is poor money management skills.
Disagreement over finances is not a new issue. They are why many couples end up divorcing. To have a successful financial union with your better half, here are some financial tips from real couples who have built business empires, improved their credit scores, and paid off debts together.
1. Talk about finances
Talking about money is the most difficult thing for a new couple. Many people don’t like disclosing their financial management and debts to their partners. The reason for this is because they fear judgment from their partners.
Being open and honest with your partner about your finances and assets is essential for building a life together. Letting your better half know about your assets, credit history, debts, loans, and money goals today will prevent unwanted surprises in the future.
Talk about how best to handle your money together, what to invest in, and your financial goals. Once you make decisions on what to do, try not to fail your partner, work hard to achieve your goals.
2. Share your financial responsibilities
Have an honest conversation about how you’re going to share your financial responsibilities. Decide on who is responsible for paying rent and how much each should be contributing to pay off the utility bills. Sharing responsibilities will help avoid future late payments and associated penalties.
3. Set your financial goals as a couple
Talking about the next large purchase you want to make together is very beneficial. It will let your partner visualize your future and encourage both of you to save.
Join hands and work together towards investments such as buying a home, buying a car, a trip to Iceland, and retirement. The big plans you make together will make your bonds stronger and strengthen your relationship.
Using money management apps and budgeting tools will make it easier for both of you to maintain your savings goals.
4. Have a joint budget
Decide together on the daily spendings of each of you. It helps you save and avoid financial quarrels. It will also help your partner understand your approaches to spending and saving money in case a financial situation that demands a tough decision occurs in the future. You can even consider gamifying your budget to make it more fun.
5. Have two bank accounts
If your joint bank account is making you have fights, consider having separate accounts. The best approach is to have one joint account and another separate account for income that you shouldn’t spend on things that involve your partner. Remember, a joint account encourages both of you to save and work hard towards achieving your mutual goals.
6. Talk about emergency funds
In life, there are multiple occasions when things go wrong. A marriage doesn’t end such occasions. It doubles them. It is good to have savings that is equal to your six months salary.
Discuss with your partner the best way to save for an emergency and then create a plan. It is a sacrifice that is worth it because knowing that you have enough emergency savings will give both of you peace of mind. It makes you feel prepared for the future.
7. Talk about risks
Some people aren’t afraid of taking risks, while others prefer playing it safe. Most couples are struggling with some form of debt that acts as a form of chain around their necks. You should set plans that will prevent you from becoming the slaves of debts.
When you take a loan, make plans on how you can settle it as soon as possible.
Being in a committed relationship with your partner is an exciting feeling. You should not let money squabbles separate you. You need to review your financial plans regularly. Failure to keep on talking about your finances, you will find yourself back to where you are today in the next five years.