Handy Tips for Managing Finances as a Couple
Trust. Support. Understanding. Honesty. These are all things that should underpin many different aspects of a relationship, from personal challenges and insecurities to habits and routines. They should also be the foundation of the way you approach finances together. Read on for some helpful tips around managing money as a couple.
Disclaimer: This post is a collaboration
Establish open and honest communication about money
Finances shouldn’t be one of those taboo topics in a relationship, although it is for some couples. Starting the conversation early, perhaps centred around financial ambitions or existing money worries, should help to make it easier to talk about as the relationship progresses.
All communication should be open and honest. Transparency is always the best way with your partner – hiding things can backfire massively down the line. If you have debt, let your partner know. If you have financial goals, let your partner know that too. If you want to understand their circumstances a little better, don’t be afraid to ask questions when the time is right.
Combine your financial plans
Long-term relationships require some sort of synthesis when it comes to your financial plans. Many of the major milestones like buying a house, getting married and starting a family revolve primarily around money. Consider your ambitions individually and see how you can combine them to create a vision for the life you want to live in the future.
You don’t need to merge daily, weekly or monthly finances unless you want to. Maintaining individuality with budgets is something that many couples do to retain some sense of freedom and control. But you can still contribute to joint financial goals.
Consider joint and individual expenses
Each person in the relationship will bring their own income and expenses to the table. If you’re living with each other, you may also have joint costs to think about. Finding the right balance between joint and individual expenses should ensure that each side is treated fairly.
It may help to set up a joint account for things such as rent or mortgage payments and household bills.
Address financial challenges together
The majority of people face financial challenges at some point in their life. As a couple, it’s crucial that you tackle these together. Paying off debt, saving for major life events and planning for retirement are far easier with the power of two rather than one. Credit cards can also help you build your credit score and cover any unexpected bills that arise. Find the best way to share joint financial responsibilities for you.
Mutual support and flexibility are key if you’re both to face and overcome money worries, especially in a way that prevents you from straining your relationship. Identify and discuss issues early and make plans to address them before they become more significant and worrying.