Money can cause stress to those who are single. However, it can cause even more when you’re in a relationship. Do you combine everything into one joint account or keep some things separate? Who pays for what each month? The following five tips can help you better manage money as a couple and save headaches, arguments or other issues that could potentially arise.
- Talk About Money Together – Discuss your income, monthly obligations, debts and other assets with your loved one. Explore the different beliefs, attitudes and feelings you each have about money. Finally, discuss how money impacts your relationship with family and friends.
- Develop A Common Vision Together – As a couple you should set financial goals together. Discuss and plan when you want to start having children and think about planning financially for it. The same applies with buying a home, making investments and taking vacations.
- Know Your Expenses – Track your expenses for 3-6 months and then evaluate them to see if they’re inline with your current goals. Discuss bills and monthly obligations so you know both know how the mortgage will get paid, electricity bill..etc.
- Employ A Money Management System – Discuss whether you will have joint or separate bank accounts, or both. How will you handle lending money to a friend or family member? Decide how you can hold each other financially accountable for putting in their fair share.
- Devise An Estate Plan – Don’t forget to go and update beneficiary details on retirement, bank and other accounts you may have open. Seek advice for tax, healthcare, insurance and other decisions that will need to be made if you’re newly married.
There are many other important things to focus on while enjoying life with your spouse or significant other, so why make money an issue? By applying the five simple tips above you should be able to manage things properly as a couple and not run into any issues.
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This article was originally posted on Well Crafted Wealth