Money becomes the talking point of many couples and it also becomes a constant source of bickering if not managed well. Although it is not possible to see eye-to-eye with your partner when it comes to managing money – however, you can always find a way that works out for both of you. So, how do you decide who will pay for what and how much? Read on to learn how to manage money as a couple with resilient financial planning. ⭐Personal Finance ⭐Money Management
Every couple has their way of managing money. For some of them, having a joint account for their expenses work, while for some others, having separate accounts is the mantra. Couples who have already found a way to manage their money must have been through a lot of hit and trials. Working together to develop a plan for managing finances can help you sail smooth. If you and your partner are good at handling your finances, you will strengthen the relationship. So, one of your relationship goals should be – mastering the art of handling money as a couple.
We know honesty is quintessential when it comes to relationships. And the same can be said about money. Be open and honest about your debts and finances when you are with your partner. That gives clarity to both of you on where do you guys stand financially. Discussing money may be one of the most uncomfortable topics between couples, but whatsoever, it must be talked out.
1 in 3 people says that talking about money with their partner benefits them in some way. But most importantly you will have to plan when to time it right. Plan for the discussion beforehand so you don’t land up in troubles later. Figure out what you will be putting on the table and if possible predict the responses that you may likely get from your partner. That way you will be prepared to have an indulged conversation that will result in something beneficial for both of you.
Remember that everyone will have a different attitude toward money. You cannot expect your partner to agree with you on everything that you may say. Assess their financial background and run an assessment on you as well. Weigh the backgrounds and make your pitch accordingly.
Rather than focusing on the differences, focus on working out on the differences. That’s the mantra – whether its relationship or money.
A lack of financial openness between couples can make matters worse. As a partner, you must have complete and accurate information about the status of your partner’s money. And the same goes for your partner as well. Here are 3 ways to dive deep into your money issue and sort it out without falling out with your partner.
- Create a separate or joint account
Once you have had a conversation with your partner, decide on what type of account will suit you both. You may go for a joint account for all the expenses or you can do it with separate accounts. If you are choosing separate accounts, it’s better to clear out on the things for which you will be responsible and the things your partner has to take care of. Having a clear idea of how the expenses will be managed will help you steer clear of the confusion that may later occur.
2. Who puts in what?
How much you will put in the account and how much your partner needs to put in – is an important question that needs prior discussion. Rather than blindly dividing it into a 50-50 ratio, consider who earns what. According to the monthly salaries that you guys get, you can agree on the ratio each one will be putting towards all your expenses.
If you people decide to opt for a separate account – ensure that you pay for all the things that you had decided and your partner also follows the lead. Do a review of the expenses at the end of every month to keep a track of the plan that you had initially drafted.
3. Keep separate cash/funds for extra expenses
We all need rewards sometimes, and rewarding ourselves should not be considered as a financial mistake as long as you are doing it within your budget. Apart from putting money in your joint/separate accounts for the regular or household expenses, keep some pounds for occasionally treating yourselves.
This way, you are less likely to divert from your budget as for such unexpected expenses – you will already have a pot ready.
Financial responsibility is a complex topic that requires a lot of planning and devising of those plans. The foremost thing is to live within your means, cutting down unnecessary expenses, and using your credit cards responsibly. The logic also applies to personal loans that you may have borrowed at some point of time to cover the extra expenses.
Try to repay all your debts on time and in full. If you are facing issues in the repayment, talk to your partner to figure out a way to get rid of the debt that you have accumulated by now. Consider a debt consolidation loan that is generally used to roll all your debts into one. If your partner doesn’t agree to the idea of a consolidation loan, then ask him if he can pay off your debt. And later, you pay him back – when you get hold of enough funds.
The bottom line
Sorting out the finances with your partner will make both of your lives easier and organized. Money issues can make your lives difficult, but remember there are various ways to sort such problems rather than taking a backseat. And hiding your financial concerns from your partner may lead to a disaster. It’s better to take things in your control. Do not just bring this topic directly without any prior discussion to the dinner table. Talk to your partner and give them an idea about the things that you both need to discuss and when. Allow them some time to think it over so that they can come prepared.
Transparency is the key to happy relationships!