Relationships are amazing: you get a partner in crime, an adventure buddy, and a personal therapist. Relationships are also undoubtedly scary: you invest much time, effort, love, and money into one person without guaranteeing how the two of you will end up. Love is about a leap of faith, but we know that a leap of faith may not always be exactly what you are looking for when it comes to money as a couple.
Managing money can be difficult as an individual— as a couple, and it could be twice that! Luckily, some people have managed and thrived off such a scenario, and we are here to ensure you are one of them! Much information is circulating online, as everybody believes they are the next self-actualized millionaire. Determining what is truthful and what will fall through can get hard.
As such, we have curated the highest quality tips and tricks to manage your money as a couple. Note that this is just a starting point and that there will always be trained professionals to help (more on that later). Read on to find out how you can be the next couple on top!
1. Have an honest and open conversation about your financial goals and priorities
One common piece of advice you hear about dating is to communicate well and often. When you are managing money as a couple, this is no exception. Set aside time when you are emotionally available and ready to communicate effectively. Delve into what you want to achieve with your money, whether buying a house, paying off debt, saving for retirement, or something else entirely.
Ensure you are both on the same page and understand each other’s priorities. This conversation will help set the foundation for all your future financial decisions as a couple, which is incredibly important if you see yourself spending a lifetime with them.
2. Financial Advisor
Regardless of age, embarking on a new financial journey with the one you love can be tough. It can bring up several uncomfortable situations and be a topic of contention for the two of you. As such, bringing a professional can help ease the burden by helping you navigate through murky waters.
A professional can help you create a plan that works for both of you and ensure you’re making the most of your money! They can also advise on retirement planning and saving for the future— this is critical if you want the relationship to be long-lasting!
3. Create a budget together
Now that you have set expectations regarding what you want, it is time to budget! A budget is essential as it helps you see where your money is going and identify areas where you can cut back or save more.
Create a budget considering your income, expenses, and financial goals. Make sure you are both comfortable with the budget and that it reflects the shared priorities you discussed previously.
4. Discuss and decide on a system to manage your finances
With a budget, you can now put it into action by deciding on a system that works for the two of you to manage your finances. Luckily, there are several options— the world is your financial oyster!
You can determine what works best for you based on your conversation about goals and priorities. This can mean discussing how you will split bills and expenses, what type of bank accounts you want to open together, and whether or not you want a third party (i.e. a financial advisor).
Some couples split their bills evenly, while others divide them based on income. Some couples have joint accounts, separate accounts, or a combination. Whatever system you choose, make sure that both of you are comfortable with it and that you communicate regularly about your finances.
5. Make a plan for big purchases
Although we mentioned creating a budget earlier, we thought that including a point about making a plan for big purchases is important because of how pertinent these purchases become when you begin to take couple finances seriously. Several big purchases are lined up: a house, a car, the budget for a child, or even just a fancy new stereo system.
A plan ensures you are on the same page and want the same things. Will you save up for it or take out a loan? If you take out a loan, ensure you are both comfortable with the terms and can afford the monthly payments.
