Financial Wisdom For Your Relationship

There is no right way to share finances in your relationship. It depends on what feels comfortable for both. Pooling finances works well for couples with high trust and similar spending styles. Some couples have separate accounts plus a joint account for expenses, and others have totally separate accounts and divvy up the bills.

However you manage your bank accounts, these seven strategies will help you.

Be open and honest about finances.

When you know that your relationship is serious, discuss your personal finances. Then, continue to be open and honest about finances after you are committed. Keeping financial secrets can destroy the trust in your relationship.

Remember, money is a tool.

You most likely have different opinions about money and different spending styles. Differing approaches to finances do not have to be a problem for your relationship as long as you keep the communication channels open. Talk regularly and be creative in finding solutions that will work for both. It is essential to respect each other’s feelings and opinions about money.

Keep track of where your money is going.

It is far too easy for seemingly small purchases to add up to significant amounts draining you financially. Consider the yearly cost of having that latte every day. Calculating the actual cost of anything you purchase with credit is also extremely important. Knowing where your money is going makes it much easier to find ways to reach your financial goals.

Set financial goals together.

Discuss what is important to each of you. For example, one of you may long to travel; the other may want to buy a house. Stay with the discussion until you find priorities that work for both. Then, develop a plan that allows both of you to reach for your dreams.

Set something aside for a rainy day.

Although it may not seem like a fun thing to do, this can reduce unnecessary stress. Something unexpected will inevitably come up at some time. Aim for saving 10% of your income. Creating a financial cushion will help you weather tough times.

Plan for couples getaways and entertainment.

It is vital to include fun in your life. Fun is as much an attitude as anything else. But planning and saving for a vacation can help you bond and reduce the stress of worrying about how you will pay for it after you get home.

Be firm with yourselves about wants and needs.

Sometimes we can convince ourselves that we need that new car, kitchen gadget, pet paraphernalia, television, iPad, phone, and so on. It can be tempting to fall for the buy now and pay later ads. Know that your life will be 100% less stressful if you wait to purchase ‘wants’ when you have the money to pay for them. Living debt free brings much peace of mind.

Whatever your choice for how to arrange and spend your money, seeing money as a tool, working as a team and talking about finances can increase your chances of relationship bliss--or at least reduce the amount of conflict over finances.