Keep Finances from Ruining Relationships
When you love someone as much as your partner, fiance or spouse, you can’t imagine anything ever tearing you apart, especially something as superficial as money. However, it happens more often than you think. Although money can’t buy happiness or love, it is necessary to survive everyday life and accomplish goals. Ultimately, when things are out of order, it can cause frustrations that can strain a relationship.
(Photo: iStock)
How do you keep your finances from ruining a relationship? Here are a few tips:
Have an open and honest discussion
A healthy partnership requires honesty and open communication. No matter your financial status, you must disclose this information to your significant other. If you dread “money conversations,” consider turning it into a quiet date night at home. You can enjoy a meal, share drinks, listen to music and discuss business.
Don’t just talk about what is in your bank account or how much you earn. Discuss your outstanding debts and financial habits. Lastly, discuss your goals and things you would like to accomplish that will require money.
Share banking information
It isn’t uncommon for modern couples to have separate bank accounts. However, making your accounts accessible to your partner can make it easier for you to remain on the same page as you manage your money and reach your goals. You can view balances, transfer funds, track your spending, pay household bills and add to your joint savings to build a nest egg.
Although there are many banks to consider, opting for a modern bank like ONE is ideal. They offer a unique budgeting resource called Pockets. These sub-accounts can be customized to correlate with your budget and expenses. You can give your partner shared access so you can both stay on top of your finances.
Take care Of personal debt
Debt isn’t a bad thing. However, when you have too much, it can cause financial strain in your everyday life. Therefore, it is ideal to keep your debt to a minimum. If you have sizable student loans, back taxes, medical bills or credit card balances, you might need to create a plan to tackle your debt. First, review financial reports, statements and invoices to determine how much outstanding debt you have. Then, develop a repayment strategy to eliminate or reduce the debt. Share your repayment strategy with your significant other so they can be your accountability partner and provide support where they can.
Build an emergency savings
When unexpected events require a large sum of cash, having an emergency fund can save you a lot of trouble. It eliminates the need to borrow from loved ones or take out a loan. Ideally, you and your partner should have at least three to six months of expenses in an account, just in case. You can work towards that by committing to an affordable monthly amount to deposit into savings.
Assign roles based on strengths
Money management isn’t easy, especially when trying to manage two people’s finances. Therefore, assigning responsibilities based on your financial strengths and weaknesses may be best. For example, if you are good with budgets, you could be responsible for creating the budget every month. If your partner is good at saving, ask them to take charge in ensuring you reach your goals and stick to your saving commitments.
Take financial courses
If neither of you is well-versed with financial management, there are plenty of ways to learn. Many financial experts offer money management courses that teach couples everything from creating and applying a budget to debt repayment and investments. You can use these courses to learn about an abundance of tools that can help you improve your finances and sustain your relationship.
Love is complicated. Safeguard your love life by considering the advice above to make sure that finances don’t become one of the complications that throw things off track.
Article w4itten by Alicia Nicholson
