Financial planning for one person is complicated enough. When you get into a long-term relationship with someone else, you may want to merge your finances. What do you need to know about finances before you take the plunge into a longterm relationship? We examine financial planning for couples. Ann Arceo, President of Savvy Duo Financial Planning had some great tips.
Talk About Finances
It’s impossible to achieve financial success between two people if you don’t talk about your finances. Ann says “Talk about your finances together regularly by scheduling a monthly or quarterly money chat. Set financial goals together and review those goals during your money chats. You should also review together the total amount of your debt, savings, and spending.”
Teamwork, as they say, makes the dream work. Work together to achieve financial success. Ann tells us “Learn to manage your money as a team. Don’t make one partner responsible for handling all of your finances. Even if your partner is better at paying the bills and managing the accounts, you both still need to know where your household stands financially.”
Don’t Sweat the Small Stuff
Dealing with finances as a couple should be first and foremost about the big financial questions. “Don’t fight about small purchases. Set a limit that each of you can spend without checking with your partner first. As long as you’re discussing your financial goals together regularly and making progress on those goals, then don’t judge your partner for playing a round of goal or buying a new sweater.” Ann said.
A serious relationship requires serious communication about money. Ann stresses this point “It’s important to discuss money once your relationship starts to get serious. You don’t want to wait for a walk down the aisle to discover that your partner never pays his bills and has been hiding fifty grand in credit card debt. You should discuss where you stand financially with your partner including your credit, the amount of any outstanding debt and your financial goals for the future. You should also start discussing your spending and savings habits. It’s important to understand each other’s money personalities.”
In a way, successfully managing your finances as a couple is like managing your finances in business. You need to talk to each other, work as a team, and communicate your common goals. A couple that manages their money together is a happy couple.