Financial Problems have been identified as one of the main reasons for relationship breakdowns. Handling finances is an important aspect of a relationship because whether we admit it or not, we cannot live on love alone – we need money! Money Rules for People in a Romantic Relationship provides some advice to help you have a better relationship!
Poorly handled finances can lead to serious financial problems. So, if one of you doesn’t know how to handle money well, both of you will suffer the consequences. But if both of you are good at handling money, you can maintain and grow your finances, and you are likely to achieve your goal of achieving financial security.
Money Rules for People in a Romantic Relationship
If you are still getting there for finances, here are five money rules for a successful romantic relationship.
1. Communicate, communicate, communicate
Some partners might not be comfortable talking about finances for a lot of different reasons. But if you are looking at being with your partner long term, then this is a topic you should both talk about.
You have to be open about your spending habits, future financial goals, or any financial problem you are currently facing. This way, you can both devise a plan on how to budget your money well.
Openly communicating about this topic will help you understand each other and what your perspective about finances is. The conversation doesn’t have to be very serious. It can be a casual sharing of ideas, see where you agree and where you disagree. For viewpoints where you disagree, try to find a compromise.
2. Get a Joint Account
If you can say that your partner is responsible for handling his/her finances, consider getting a joint account for your shared expenses like paying for bills, rent, mortgage, groceries, etc. Having a joint account will help you track to monitor your expenses together.
However, doing this also poses some risks, especially if your partner is not financially responsible. This can lead to tensions and bad credit status. To avoid this, go back to rule number 1 – communicate.
Despite having a joint account, you are still encouraged to open an individual account where you can keep money that doesn’t involve your partner. Just because you are together, it doesn’t mean that all your money will be marital property. You can spend or save this money however you want to.
3. Be Honest
Finances can be an awkward topic to talk about, but you have to be honest with your partner if you see your future with him/her. You have to tell them your current financial status, including having debts, loans, good/bad credit history, or your spending habits.
Transparency and willingness to change any unhealthy financial habits can help your relationship a lot. This will help your partner position himself/herself financially in consideration of your financial situation as well. Don’t surprise your partner with any financial issues because money doesn’t grow on trees. The more transparent you are, the more you can do things to work it out.
4. Set Financial Goals
Set financial goals with your partner. This can be monthly, yearly, or even long-term ones. Assuming that you have done the first three tips, it will be easier for both of you to set achievable goals within your financial capacity.
Let’s say, for example, you are looking at buying a car. You can do the calculations in consideration of your income, debt, savings, and extra money. Based on these things, you can decide whether this goal is achievable and if it is, how much will you share. Having a goal can also help you trim down spending on unnecessary things. This can give you a clearer picture of how much you can spend and what needs to be spent.
5. Legacy Planning
Finances involve legalities, and it is something you have to discuss with your partner. If you are not married or in a civil partnership, your partner won’t be legally entitled to anything if he/she passes away. Your shared assets will be given to the closest living relative or the state.
It would be best to write a will that would include what will happen to your properties, savings, insurance, funds, jewelry, and investments after you die.
Do you have other relationship advice that you think we should have added to Money Rules for People in a Romantic Relationship?
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