Tips to Improve and Simplify Finances as A Couple
Talking about financial management with your partner is very important not only for the consolidation of a sustainable economic future, but also for the development of the relationship.
According to experts, 82% of newly married couples say they feel closer once they agree on financial issues.
That is why here in this blog we are going to give you several tips that will help you have a better handle when it comes to planning and managing finances as a couple.
Talk about the topic in a pleasant environment
Talking about personal finances with your partner does not have to be uncomfortable or seen as a task. It is important to find pleasant and relaxed spaces to discuss these issues, an easy way to achieve this is to treat these conversations as if it were a date. Prepare a dinner, set a time that works for both, these agreements will create an optimal environment to discuss any financial topic.
Align finances with goals or dreams
Now, no matter how pleasant the environment in which you discuss finances is, it is always advisable to start the conversation around goals or dreams. This way, it’s easier for the other person to empathize and understand the why behind the financial decisions you make.
Defining financial personalities
Once you both have clear intentions, it’s essential to get to know each other financially. Getting to know your partner’s financial personality can give you more clarity about their future plans, stance on issues like investments or mortgages, and much more. This can be defined by taking into account the way each of you spends, saves, and invests your money.
Loving a budget
When you get clarity about your partner’s financial needs and expectations, it’s time to put together a budget together. There are two ways you can divide up obligations and payments depending on each person’s financial context and reality.
Joint and mixed finances. In this case, everything each party earns will be put into a joint account and spent according to the budget you made. This way of handling finances is ideal when it comes to a long-term relationship. It is important that this budget includes: all expenses, savings, debts acquired jointly, as well as separately, and free expenses.
Distribute obligations. The second option is based on dividing joint expenses and each party contributing separately. If they have similar incomes, it is recommended to divide half/half, that is, 50% each. If the incomes are very different, it is best to do it proportionally. For example, if one earns 800 and the other 200, that person will pay 80% of the joint expenses and the other 20%. To make this budget, only joint expenses should be included, at least one joint savings, a dream that motivates both of them, and the payment of joint debts only.