Every relationship should not be defined by money. Indeed, relationships last not because of money but with love and respect. Having said that, we cannot ignore that money has some role to play in a successful relationship.
Money is an essential aspect of our lives. It plays a role in the sense that married or unmarried couples with financial security and stability have to deal with cash crunches less often. And these are the times when mutual respect is truly tested.
Not having enough money leaves less room to enjoy, as the individuals may have to answer recurrent questions about financial stability. That is why it is imperative to build a stronger financial system between the couples to ensure a friction-free relationship.
Here Are A Few Couple-Friendly Financial Advices
Plan Your Wedding Budget
On average, couples in the US spend $34,000 on their wedding. Imagine what else you can do with this much money when starting a new life. This much money is enough to put down as a deposit for your new home.
So, think wisely before you spend lavishly on your wedding. All this cost for a one-day extravaganza, and for what? To show your love for each other? There are many ways to show that, and spending an abundant amount of money is not one.
Hold A Monthly Financial Meeting
Sharing is one of the ways to maintain a relationship. And when it comes to finances, sharing the way you both plan to work in the future is a great effort and shows your maturity levels.
Hold meetings and discuss your financial goals. Start from smaller goals and celebrate their accomplishment before you plan big things together. It helps build your future and improves your relationship.
Have Separate Checking Accounts
As a new couple, you might think that having a joint checking account is better for your finances, but that is not true. Having a joint account means that you have to share everything with your partner, including any mortgages, alimonies, loan repayments, and so on.
Any sort of resentment from your partner towards debt can be harmful to the relationship. While it is important to share everything (assets and liabilities) with your partner, you should also be careful when sharing too much.
Plan Before Having Kids
Another thing couples can quickly become a problem in a relationship is unplanned kids; both parties must be ready before having kids. In the US, the cost to raise a child is more than owning a home. Rest assured that having a kid will put you back mentally, physically, and financially.
So, in a scenario when you are already troubled with a scarcity of physical and mental health, financial woes can only aggravate the issues and might even lead to causing relationship troubles.
It is always judicious to have a plan and remain afoot with your finances before planning for a kid.
Have A Debt? Repay It Together
One of the woes or promises that you make as a couple is to remain with each other at all times. Even though, as per US law, the debt accumulated by the individual before marriage has to be paid by the same person, repaying it together can help you both lead a debt-free life easily.
Follow The 50-30-20 Rule
This might be textbook advice, but it often needs to be shared, for the individuals tend to forget it from time to time. The 50-30-20 rules state that you should spend 50% of your earnings on essentials, 30% of the money on entertainment, and save 20%.
If not this, then make a rule to save at least 10% of your earnings, even if you have to make small sacrifices to reach the monthly goal.
Teach Savings To Your Kids
For some, this piece of advice might have come a bit early, but it is relevant and imperative for a better future. Nobody, let alone kids, has an innate ability to save and know money’s importance.
They must learn to be financially mature, and kids understand more by observation rather than talking. So, make sure to be responsible with money yourself, and the kids will learn from you automatically.
How Do Your Finances Merge As A Couple?
Remember your promise? Through thickness and thin. Well, that is exactly how your finances should merge after marriage or after you have a couple.
One of the primary aspects of shared responsibility as a couple is staying financially strong and stable together. Hence, plan and execute your efforts together.
It is evident that you need money to survive and lead a comfortable life. Similarly, every couple needs to understand their position vis-à-vis their financial stability.
In any case, you must work together to achieve a higher level of financial maturity and stability. Make sure to teach others when you get the chance and take every decision, not only financial, together as a couple.