Managing Your Finances As A Couple
One of the most important things in a relationship is being on the same page when it comes to finances. Money is often a touchy subject, but it's important to have open and honest communication about your finances with your partner.
No one wants to argue about money, but managing money as a couple doesn't have to be difficult. Here are some guides on how to manage your money as lovers.
Managing your money as a couple is one of the key topics of daily life, along with managing household chores or even managing your time.
1.Set financial goals
Before you start working on your financial goals as a couple, you first need to sit down and talk about those goals. Do you want to be debt free? Go on a trip? Once you know your financial goals, you can start developing a plan to achieve them. It’s the best motivation!
2. Set a budget and stick to it
Once you have your financial goals set, it’s time to start budgeting. Work together to develop a budget that covers all your essential needs and allows you to have fun. Next, commit to sticking to your budget so you stay on track to achieve your goals.
3. Communicate regularly
Perhaps the most important tip for managing money as a couple is communicating regularly. Talk about your finances often, even if there are no problems. This will help you keep the lines of communication open and avoid surprises along the way. You also need to make sure that you are both on the same page when it comes to major purchases. If one of you wants to buy a new car or go on a trip, talk about it first to avoid (bad) surprises.
4. Be transparent about your spending
Good accounts make good friends and happy marriages! Be transparent about your expenses, and don’t hide them from your partner. Unless it’s his birthday present, of course.
Whether you have a prenup in place or not, you are in the same boat. It is essential to be honest about your purchases, but also about the credits or debts you may have. Get things straight to establish real financial trust between you. Because don't forget, in terms of finances: you are in the same boat!
5. Recognize your personality differences
Not everyone is born and grows up in the same conditions. As a result, everyone has their relationship to money: one likes figures and Excel tables, the other hates calculations, one is a spender, the other thrifty, etc.
Personality differences can be the root of some relationship conflicts, but often, that's not the real root of money-related problems. The root of the problem is when one of you neglects to listen to the other's opinion or when one of you gives up on managing finances altogether. So, even if finances put you off, get involved, unite, and form a great team of accountants!
6. Take salary differences into account
In most couples, one person earns more money than the other. You both rarely earn the same salary. Sometimes, for example, one of the partners of the couple puts part of their career on hold to take care of the household. More generally, a gap in economic power (family wealth or salary gap) is an essential subject to address, because if it is not managed with complete transparency, it can create a power struggle, an imbalance, and great frustrations.
It is therefore necessary to take this difference into account so that there is no perceived imbalance. The one who earns more might feel entitled to have a say in all expenses, while the one who earns less might feel guilty at the smallest expense.
There is no miracle recipe or perfect method. The important thing is to discuss and come to an agreement.
7. Have a joint account and separate accounts too
Some couples think the best way to avoid money issues is to avoid joint accounts (and have separate accounts). His salary goes into one account, yours into another, and everyone pays their bills separately. But, marriage is a partnership. It is no longer a question of “his money” and “my money”, but of “our money”.
One of the most commonly chosen solutions for managing money as a couple is therefore to have a joint account for bills and joint expenses (rent, groceries, etc.), and separate accounts. The joint account can be funded in proportion to each person's salary.
Thus, each person contributes financially to the couple's expenses, commensurate with their income. At the same time, separate accounts allow everyone to spend the money in them as they wish, without having to justify themselves.
This method gives both partners some freedom when it comes to spending.
