A CNBC report has revealed that 35% of long-term relationships have huge fights because of money related issues. Furthermore, people are 10 times likely to split with a partner who is bad at managing their finances.
While you may love your partner, money speaks and can cause friction in a good relationship. So how do you improve your money relationship to avoid it having affect your relationship?
Be transparent about your finances
When it comes to finances, many couples find themselves stepping on eggshells. It can be an uncomfortable conversation, but if both people are left in the dark about their partner's finances, they could end up in financial turmoil.
A survey conducted by Forbes revealed that 1/3 of spouses admit to lying to their partners about money. But how do they do this? They found that most partners lie about bills, debt, secretly spend or hide money in a secret account.
Not being transparent about your finances does not only open room for unrealistic expectations, but it can easily push both people into debt. Knowing how much each person earns can lead to less stress and a more realistic spread of expenses that they can both handle.
Avoid keeping up with the Jones’
Trying to keep appearances is one of the reasons many couples find themselves fighting over their finances. Even if you are not in a relationship, it usually ends badly when you try to keep up with appearances to impress people.
Being honest with yourself in terms of what you can and cannot afford is crucial to protecting your finances in the long term. Speaking to a financial advisor can help you set realistic goals and expectations for your financial goals. Always remember that your financial situation is different from the next person to avoid pushing yourself into debt.
Knowing your spending behaviour
People easily become frustrated when they find their partner has a spending habit that tends to land them in hot water. The reality is that people see money differently and spend it differently.
While one person may be big on saving and investing in well thought out investments, another person might rush into things head-on and spend money on lavish items or has their spending priorities the wrong way around.
It is a game of strength and weaknesses when it comes to working your way around money. Understanding how your behaviour affects your finances is crucial. However, what is even more crucial is having a shared set of financial goals you aim to achieve to give you a sense of direction
Having a budget in place can also be a financial saver. However, it is vital to have a realistic budget that will take into consideration things such as savings, paying off debt, making investments and also entertainment or non-essential items that you would like to spend your money on. Remember to always review your budget every 2-3 months to make relevant changes until you find your sweet spot.