Managing one’s finances is already a difficult task for many individuals. However, it becomes that much more challenging when a long-term partner is involved. Combining two different – sometimes divergent – sets of incomes, expenses and financial goals successfully is no mean feat. In fact, fighting about money is one of the top five reasons cited for couples splitting up.
Even so, it is not impossible for you and your spouse to achieve a healthy financial state. Here’s how:
- Communication is Everything
Communication is crucial to any successful relationship and this includes discussions about money. Have that initial conversation with your partner about how you will manage the finances in your relationship. There are several options available; you just need to find the one that is most appropriate for you and your spouse. Most importantly, approach these discussions with honesty, love and a willingness to compromise.
- Establish Expectations for your Financial House
It is necessary for you and your spouse to discuss your individual lifestyle choices and agree how you will both live going forward. Identify assets and debts and create a plan for increasing the former and eliminating the latter. Understand your significant other’s financial priorities and goals, and ensure they understand yours too.
- What are your Shared Goals?
As you plan for the future together, you and your partner will need to set specific, attainable and measurable financial goals. This will not only ensure that the two of you are on the same page, it will also give you something to work towards. Some couples may have shared priorities, but because they fail to define their goals together or agree on their approach, money becomes a source of conflict for them.
- Save and Invest Together
One benefit of having a partner is the ability to pool your resources to achieve common goals. Having joint savings and investments may even give you access to higher returning assets than you might have otherwise had to settle for as individuals. Additionally, sharing the financial decision-making ensures each of you has a say, reducing possible friction in the future.
- Consult a Financial Expert
Many couples find it beneficial to speak to a financial advisor about managing their shared wealth. If you engage one, he or she will offer insight to help you work towards your goals. An expert can also provide valuable advice to aid your financial decision making.
In conclusion, money management is a source of conflict for many couples. However, it doesn’t have to be the same for you and your significant other, with the help of the above tips.