Happily Ever After: Managing Money as a Couple
Managing money can be a significant source of stress in relationships, but with a little teamwork and some smart strategies, you and your partner can build a solid foundation for your finances together.
When it comes to talking with a spouse or partner about money, many people shy away. It can be scary—but it doesn’t have to be. Here, we’ll explore a dozen tips for practicing money movement as a team and help set you up for financial harmony.
1. Communication is Key
Open and honest communication is the first key to successful money management with a partner. Start with a casual conversation about your financial goals, expectations, and any concerns you might have. Create a safe space for discussing money matters without judgment.
It can be a good idea to talk about finances long before the ‘big wedding day’ if you’re not married yet. Make sure you’re on the same page right from the start when it comes to your net worth as a couple, outlining your financial goals, discussing how you’d like to manage accounts, and more.
2. Discuss Financial Goals
It’s important to realize you may have financial goals together, but you may also have separate goals, and that’s okay.
Also, discuss values, not just dollar amounts. Once you've communicated your individual goals, work together to set shared financial intentions. Whether it's buying a house, saving for a vacation, or retiring comfortably, having common goals will help you both stay motivated and on the same page.
3. Create a Budget
First, don’t get it in your head that a budget has to be complicated! Together, list all your sources of income, then list your monthly expenses. Prioritize your spending to align with your shared goals and identify areas where you can cut back and be more disciplined when it comes to your spending.
4. Don’t Sleep on that Emergency Fund
Life is full of unexpected expenses, from car and home maintenance to the loss of a job. Having an emergency fund can provide some stress relief in times of crises. Aim to save at least three to six months' worth of living expenses to cover any unforeseen events.
5. Divvy out the Duties
Divide financial responsibilities based on each person's strengths and interests. One partner may handle the bills and day-to-day finances, while the other manages long-term investments and retirement planning.
6. Joint or Separate Accounts? Don’t sweat it, do what works best for you.
Decide whether you want to maintain joint accounts, separate accounts, or a combination of both. Everyone is different; find what brings you and your partner success. For example, some find success in three accounts: one for joint expenses, one for individual spending, and a shared savings account.
7. Air Out Your Debts
Be transparent, it’s not fun for anyone in the relationship to find out about the burden of debts down the line. Discuss any existing debts, and how you'll tackle them together to pay them off efficiently.
8. Stay Informed
Regularly review your accounts, investments, and credit reports together to stay informed. You can use convenience tools such as online banking access, and annualcreditreport.com to view your free reports annually.
9. Plan for Retirement
If you want to live happily ever after, think about that “after” part: retirement! Start saving for retirement early so you can live abundantly and happily. A financial advisor can help you create a retirement plan that suits both your long- and short-term goals.
10. Regular Money Check-Ups
Set aside time for regular money meetings with your partner to review your progress, adjust your budget as needed, and discuss any changes in your financial goals. Do this at least once a year, but biannually could be even more beneficial to keep you on track!
11. Be Supportive
Remember that money is a tool to help you achieve your dreams together. Be supportive of each other's financial decisions, and avoid blame or criticism if things don't go as planned.
12. Seek Professional Advice
If you encounter financial challenges or disagreements that you’re struggling with and can't resolve on your own, consider seeking the help of a professional. That might look like your friendly Credit Union staff, or even a financial advisor / counselor. Expert guidance to ensure your financial well-being as a couple isn’t something to be embarrassed about!
Take a proactive approach, and communicate to your partner about these topics throughout the relationship. This will help ease your stress when going into crisis mode when things don’t go according to plan. You have the power to create a positive environment for discussing finances together.
Remember, your partnership is about more than just money—it's about building a future together and enjoying the journey along the way. So, take these tips to heart, and here's to a financially harmonious and happy relationship!
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