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Couples Financial Advice on Planning
When you’re deciding to merge expenditures with a partner, there are major aspects that need to be taken into consideration. Whether you’re combining bank accounts or splitting the cost of an investment, including a significant other in your monetary obligations is a big step. Prepare yourself by mapping out a plan using this couples finance advice.
First Things First
Many people think that joint accounts are a necessity when it comes to funding mutual expenses. A joint account can prove to be a convenient solution when contribution becomes a factor, but it shouldn’t be your only source for storing funds. Think about which monetary obligations you possess together. Shared accounts should only hold the budget that you have set aside for mutual responsibilities, such as house or car payments, utility costs, etc. It’s advised that each person’s extra income should then be put into a separate personal account.
Discussing things like prenuptial agreements can also be beneficial. This will ensure that the same precautionary measures are taken to secure the assets that you acquire before and during a relationship. By taking time to plan how a joint account will be used, you can save a lot of hassle further down the road.
As uncomfortable as discussing these topics can be, it’s better to be safe than sorry. Remind your partner that you’re also encouraging them to do the same thing. That way, if anything were to ever happen, you both will remain financially independent.
Rules for Combining Expenses
Everyone is different, which means everyone spends differently. If you and your partner don’t have the same spending habits, it’s a good idea to flush out any expenses that might be deemed worthy to each other. For instance, if you tend to be frugal with your income and your significant other spends more than you’re normally comfortable with, implement a budgeting system for your joint account that includes a spending allowance for each party. You’ll both have freedom to make purchases that you feel will benefit your relationship, even if the other doesn’t agree, and you won’t run into trouble when there is lack of communication.
More than 80% of Americans are in debt. When combining income, you should take into consideration your own financial standing as well as your significant other’s. Whether you have collected student loan debt or are paying off a credit card, all financial obligations need to be out in the open. It will depend on personal preference when it comes to deciding if you’ll take on each other’s debt, but remember that whatever you decide should be an honest and clear consensus.
One of the biggest mistakes couples make when planning their financial expenditures is relinquishing all responsibilities to one person. Even if you aren’t confident handling money, you should still be involved in major decisions involving cost. Surrendering all of the choices to one person can leave you uneducated and in the dark about common payment processes. Controlling a joint account together will ensure independence and stability if something were to ever happen.
Whether you decide to combine all of your expenses or not, couples financial planning is important. Be sure to discuss long-term goals, and plan appropriately for those goals. Visit our page to learn how to make a budget for your accounts and build a solid foundation for combining expenses.