What love puts together, let no financial circumstances tear apart. While 64% of couples have stated that financial infidelity in the form of lying or hiding money is a deal-breaker, money can still be one of the main contributors to a breakup.
How can you protect your relationship from feeling the strain? Here are five practical tips to get you started.
Have the money talk
Discussing finances with your significant other can be an uncomfortable experience. However, it's better to be on the same page when it comes to managing your finances together than assuming that you have the same understanding.
More so when it comes to major purchases that can have a huge impact on your finances. This is a practice that is not only reserved for married people but can come in handy for couples who share any financial responsibilities.
Creating a budget together
A survey by Money Habitudes has shown that 55% of couples have not discussed a budget with their partner, especially when it comes to holiday shopping. Setting a budget may be the least fun thing to do in the world, but it could mark the difference of you reaching your financial goals or even having a stress-free month from worrying about finances.
It is important to come up with a budget together so that you are on the same page. Transparency and honesty are crucial when it comes to setting a realistic budget or finding smart ways to cut back and save. Handling your finances together can also prevent financial abuse where one partner controls all the finances.
Balancing your income
Striking a 50/50 balance with each other when it comes to the splitting and paying off of bills can work for some couples, but it doesn't mean it can work for everyone. Having a clear understanding of what your partner makes and what they can afford can make it less stressful for each of you. I
t's also a great way to manage your financial expectations so that you do not end up feeling frustrated with each other. Speaking to a financial advisor on how you can make your income work with your partners and balancing it according to what you can both comfortably afford will be beneficial in the long run.
Understanding your money personalities
Do you know your money personality? Knowing what type of money personality you are, can help most couples avoid monetary issues down the line. One partner may be a spender while the other is a saver. Neither can be bad if you know how to work with your type of personality.
It will also make it easier to spot each other's strengths when it comes to managing various aspects of your finances. However, it's also fine to keep your finances separate but it will require constant communication and honesty.
Planning for your future
Thinking about your financial future is crucial. Whether you are still at the stage of coming up with baby names for your future child or pet or plan on taking big leaps such as marrying your significant other. Protecting them financially will play a significant role, which is why having policies in place such as life insurance or investments will be beneficial for you and your loved ones. The best time to start planning is now.
