Money issues are one of the most common reasons why relationships fail. Even if you’re not in a relationship, money plays a large role in daily stress. When you add a partner into the mix, things become a bit more complicated.
You now have someone who you have to discuss decisions with and set common goals with. So before you let financial issues ruin your relationship, be sure to read our guide below! Here are 7 helpful tips to manage money and relationships to avoid unnecessary drama and turmoil in your life!
1. Find a Common Goal
One of the first things that you should consider when dealing with money inside a relationship is finding a common goal. Before you entered a relationship, you had your own life goals and bills. Now that you’ve combined your life with someone else, there’s another set of goals and bills to add to your own.
It’s important to be on the same page as your partner when it comes to these goals. Sit down and talk about what both of your goals are and determine a common goal between the two of you. Be sure to communicate about short-term and long-term goals.
If you find that these goals aren’t parallel to one another, discuss ways to merge them. This will help you have a smooth relationship with your partner and both sets of income.
2. Understand Your Partner’s Money Habits
Next, you need to understand your partner’s money habits. From the beginning of your relationship, take the time to understand how your partner handles his or her money. In the early stages of the relationship, do your best to pick up on clues.
For example, listen to how your partner discusses their career goals or any other hints about money. As the relationship gets more serious, it’s important to openly discuss more detailed information such as retirement plans, savings accounts, debts, credit scores, and more. These are important pieces of information that will help you determine his or her money habits.
Having an understanding of this from the beginning means you won’t be slapped with any surprises down the road.
3. Decide on Joining Accounts or Not
As you may know, it’s quite common for couples to have joint accounts. However, this is something that’s slowly losing its popularity. More and more couples are opting to keep their bank accounts separate.
This is even more true for couples who have come together at a stage in their lives where either one or both partners have their own built-up savings account or investments. When this is the case, it may be beneficial to keep the accounts separate. This way, there’s no argument about what portion of the money is whose.
If you must have joined accounts, we advise waiting until becoming legally married to do so. This eliminates the risk of one partner clearing out the entire account after a separation.
4. Have an Allowance Account
One great tip for those couples who’d like to have a shared account but would also like to keep their main account separate is to open a joint allowance account. Use this allowance account to hold all of your funds that you’d like to share as a couple. This type of account can be used for things that you both pay for.
For example, use this money for splitting bills, date nights, furniture purchases, and more. Each time you get paid, deposit your checks into your own account and then both transfer an agreed-upon amount into the allowance account where both partners have access to it.
It’s a great way to share expenses with one another without having to merge all funds.
5. Make All Final Decisions Together
Never make big decisions such as taking out cash loans without discussing it with your partner first. We’ve all been there before, stuck in the struggle of not having enough money to pay your bills. Taking out cash loans is a great way to get the money that you need quickly, but remember that it’s something you need to agree on with your partner first.
Imagine coming home to a brand new dining room table that you had no idea was coming. You’ll most likely feel confused, betrayed, and possibly anger. Although you might have needed a new table, it’s not something that you want to be surprised with if money is a current issue.
Just the same, you don’t want to surprise your partner with any big purchases that could affect both of your finances.
6. Don’t Hold Salary Differences Over His/Her Head
If you’re in a relationship where you make more than your partner, don’t hold that fact over his or her head. You want to ensure that the partner earning less money still feels valued. It’s okay to still split things 50/50 in the relationship, just understand that you’ll have to take their lower salary into consideration.
Nickel and diming each other isn’t going to get you anywhere and will only cause frustration. Be understanding of these differences and learn how to work around it.
7. Schedule a Weekly Meeting
At the very least, schedule weekly meetings where you and your partner can discuss all financial goals, issues, and anything else. If needed, try your best to treat the meeting like a business one. Meet up somewhere outside of the home and have documents and notepads ready to aid you in setting up a well-structured plan.
To lighten the mood and reduce the risk of arguments, consider bringing snacks or anything else to make it more fun and enjoyable.
Having Problems With Money and Relationships?
If you’re having money and relationship problems, then we hope these 7 tips have helped you. Always know what you’re getting into before taking the plunge into a relationship and take the time to set common goals, decide on joint accounts, create an allowance, make decisions together, and schedule weekly meetings.
Don’t let money ruin your relationship! Take action now!
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