If you are going to marry your partner in the next dates or are going to start living with her or him in the coming weeks it is important that before doing so you talk for a couple of hours and discuss a series of very important points of your personal finances as a couple
You can love your partner. Being blended like two drops of water on many issues, even having the same relationship with respect to money but, normally, differences arise in financial planning. And that will result in a few discussions in the future. In addition to confusion and disappointments.
That is why it is important that you observe in detail before you start sharing your finances to avoid problems in the future and have common goals that both of you strive to achieve.
Above all there are key points on which you have to speak with total confidence . And this is what we are going to see in this article.
Key Aspects to Have a Good Couple Finance
- How much money do you have ?: How much money is in all your checking accounts, savings accounts, time deposits, etc.? An advice. If you start to hide things at this point, it already speaks quite badly about the level of trust that will be in the future.
It is an important point because it is key to know how much savings you start.
- How much debt do you have? : In this you also have to be completely honest. Put all the cards on the table, or else, you are just laying the foundations of serious problems in the future.
It is much better that you both reveal your complete financial statement, because you do not do so, you are hiding a “ skeleton in the closet ” that will sooner or later leave and disturb the tranquility of your life.
- How much money are you making right now? : How much money do you earn in a year? Is it expected to grow in the immediate future? How stable are your jobs? Will there be enough income to have the standard of living you want or will some adjustment have to be made?
Knowing the income is very important
Since it determines the standard of living that you can have, the amount of savings and whether you should focus on increasing income or other aspects of your finances.
- What necessary expenses do you have? : Normally, when the expenses are shared the economy works better but that does not take away so that you analyze all your expenses. See what expenses are necessary and which are not.
The idea is the same as if it were individually. Reduce as much as possible the necessary expenses. The sooner you eliminate the excess “ fat ” the better it will go financially. In the next point you will focus on unnecessary expenses .
- What superfluous expenses do you have? : It is important that you clearly indicate what types of expenses you usually have that are not necessary at all. If one is an “addict” to buy shoes and another to buy DVD’s, one must be honest and recognize it in order to reduce it.
You also have to be realistic and not completely eliminate these expenses because the relapse is worse. But to allocate a certain amount of money to this type of expenses is a way to solve the problem.
It is necessary to specify the way in which each one will spend on superfluous expenses
It is not healthy for one person to completely eliminate these types of expenses and the other to allocate a lot of money to them.
- Are you going to combine your money? : As I mentioned in the article “ Life in Couple Vs Personal Finance ” my partner and I combined the money but leaving a certain amount for the expenses of each one, even each one has his own savings. But we do have a common account. We have been there for many years and financial problems and discussions have never appeared, so I am the system that I recommend.
Many people think that not raising all the money shows a lack of trust between the two parties. However, I think it is a source of problems as soon as one of the two parties spends more on buying bags or buying console games, for example. It’s a matter of time.
- Who is going to manage the finances? : In most couples, a person is responsible for keeping track of finances. Talk clearly about who is best at this function.
And above all that one of them takes control does not mean that the other party does not have to know what decisions are made, what financial products are hired, what your financial goals are, etc. There should always be a lot of communication.
Trust is key in any couple, and money can be a difficult part of building trust. So take your time to do it right.