Money can be a touchy topic both inside and outside of a relationship. Conflicts and disagreements in relationships often spark from money related issues. When involving your partner into your financial life, its best to be honest and open with each other. Understanding each other’s current financial standing as well as future goals is a big step to being able to work together. Here are some things that you and your partner can do to manage your money while in a relationship:
- Know how each of you handle money individually. Are you the saver or the spender? Airing out and talking about how both of you handle money is a good starting step to having a successful money partnership.
- Set goals. We don’t get in the car without knowing where we are going so why wouldn’t we create a set plan for our money? Having an idea of where you both want to be 12 months or 12 years from now gives your plans space to come to pass.
- Budget together. In addition to knowing how each other handles money and having plans, budgeting together is also really important if you want to be financially successful together. Budgeting bills, groceries and even fun events like trips or splurges together reduces friction when it comes time to pay bills.
- Put all of your debt on the table. Honesty about how much debt you owe is the first way to collectively tackling debt as a whole. Figure out based off of who owes what, how much interest has added or will be added, and how quickly you can both make payments to reduce your combined overall debt. This does not only get rid of your debt but doing it together can ultimately strengthen your relationship with your partner.
- Plan for emergencies. Lay-offs, car issues and broken washing machines happen. Not having an emergency fund as a cushion in preparation for these events is a sure way to cause conflict. Have an emergency fund that you both equally put money into so if something does arrive, you both are prepared.
Some of these tips may not work for everyone. All relationships and dynamics of a relationship are different. When it comes to money in a relationship, having your partners back and being dependable is the best thing you can do. Communicating with your partner about your money goals, debt and spending habits allows both of you to plan ahead together. Together managing money and paying off debt can be faster and easier when both of you are on the same page.
If you have any other tips that you want to share that has helped you please leave a comment below, Thanks!