Marrying or moving in with your significant other is an exciting life event that comes with all kinds of advantages and compromises. This includes working out the household budget and savings plan.
When you’re already living with your significant other as a couple, the way you spend money directly affects your partner’s financial wellbeing and vice versa. Hence, it is important to create a financial plan to share expenses and still save money.
Some couples split expenses and are happy with the results. Those who have similar incomes simply split expenses, 50-50 but things get more complicated when one partner earns significantly more than the other. In these cases, go for an equitable split over an equal one.
In a relationship, honesty is so important. This is more especially true with a couple’s finances – you need to be honest when it comes to sharing what you have and what you owe. However, there is still a high percentage of the general population keeping secrets from their significant others. There are still some who keep mum about their bank account and fail to disclose significant credit and debt.
There are many reasons why financial dishonesty is problematic, starting with the fact that you can’t create a budget or set financial goals for the future unless you know where you stand. Many are hesitant to open up about their finances to their partner, thinking that it can be scary and embarrassing. However, it also signifies a milestone in your relationship where you both acknowledge and accept shared responsibility for your finances.
Once you have developed honesty and trust towards your partner, the next step is to establish your priorities. You need to talk about what you want to do in life together and set financial goals. A good savings plan should include predetermined contribution amounts from each pay check toward long- and short-term savings goals.
It is so nice to have a partner who is financially smart, but what will you do if your partner is hopeless with money? Check this out to know the solution: https://www.watoday.com.au/money/planning-and-budgeting/is-your-partner-hopeless-with-money-here-s-what-to-do-20190618-p51ysm.html