Merging your day to day life with your significant other may be one of your most well thought and sought decisions. You are glad, you did it!
Spending your life with your loved one has its own kind of happiness. However, everyday you can’t have spring and rainbows. There are certain ups and downs and one of these includes money.
Nearly two-thirds of the couples in a committed relationship argue at least thrice a week and 83% of this is about finance, Money is also one of the root causes of several divorces and the percentage is consistently increasing.
Below we have compiled five pointers to remember when it comes to money in a committed relationship.
- Joint/ Personal Combination:
First of all, you shouldn’t be shy with your significant-other about deciding what you would prefer when it comes to bank accounts because here you can find a middle road.
Joint and personal bank account benefits depend on the couple’s nature/ preference. What is preferred by you as a couple might not work for other couples. Discuss with your partner and see what works out for you as a couple.
A joint account helps with insights concerning investments, expenditure, and emergency savings. However, some individuals do not like the fact the joint account takes the liberty of individual spending without your spouse consent. Hence prefer a personal account while contributing to the amount same as they would do in a joint account.
If you both have opposite preferences, you always have a joint account as well as a separate personal account.
- Be on the Same Page of Financial Literacy:
Sometimes your financing is based on experience and other times luck or an estimation. In such cases, there is a mediocre probability of success. It’s time to get over your “by chance” finance management.
At the relationship stage financial literacy is something you and your spouse should get familiar with whether you consult an expert, join courses or explore the basics through the internet.
Financial literacy refers to how you understand finance and use effective strategies and use financial skills for personal financial management, investing and budgeting.
The good thing about a financial literacy course is that the whole thing would be objective. This would help to reduce disputes concerning money.
- Investment for Future Plans:
What are your plans and how do you want to proceed with it holds value in a committed relationship. The future financial plans cover vast categories such as insurances, travel plans, family plan, daycare expenditure, paying off debt, buying new assets, etc.
Once you have decided the priorities you can look into investment plans such as the stock market, small business or even real estate. Several factors that you should consider before any investment includes:
- Student loans
- Car/ Mortgage/ Personal loans
- Credit history and credit card debt
- Insurance costs
- Other monthly bills
- Savings and Emergency funds
- Retirement accounts
- Track with An Application:
Depending only on one spouse to keep track of the expenditure is unfair. Whether employed or not, it can take a toll on one’s mind keeping everything aligned and noting every detail of finance.
One way to fair share is by using joint software or plans such as those offered by the GuardianWealth management. Several apps let you create a budget and help you track your expenditures, estimations, and savings easily.
- Fair Share:
For several people, it appears to be harsh and a sign of scepticism to sign a prenuptial agreement before marriage. Prenuptial agreement refers to the contract stating how the assets will be divided in case that the couple decides to part ways. The reality is, a prenuptial agreement can help you avoid financial dependency and arguments about money.
If you take into consideration the broader perspective, a prenuptial agreement is a contract of fair share and financial independence for both working spouses.
The reason that prenuptial agreement is not harsh is that if you truly care about your spouse you would want to give them a fair share even if things don’t work out in a relationship. With no financial dependency, all there left would be genuine admiration.
A Simple Review Of Article:
A relationship is based on mutual consent and the same should go for the financial situation. You can handle your finances easily with financial literacy, preferred bank accounts, mutual investments, proper insights and even signing prenuptial agreements.