One of the most important discussions to have, even before becoming a couple, is financial discussion. Whether you are married or planning to, you and your partner need to align on key aspects of your lives. Some of these aspects include parenting, lifestyle choices, finances, etc. For your relationship to be successful, there must be an agreement on goals and objectives, especially in the area of finance.
In this article, we will take a look at 7 tips that will help you manage your finances properly as a couple.
Be on the Same Page
Finance is one of the major causes of disagreement between parties, couples included. In order to avoid this, discuss your finances and be on the same page. Know your individual income, and understand that someone might need to sacrifice more of their earnings if required, especially if they earn more. Discuss each other’s personal financial goals and priorities and find a way to blend them together.
Know the difference between yours, mine, and ours.
While some couples merge bank accounts, others may prefer to keep things separate. Find a system that works for your situation, and do that early enough. If you prefer to merge your accounts, always know that both of both of you need to take responsibility of the account. Most times, couples take a percentage of their income in a joint account, while they also keep individual accounts. This has been regarded as a good financial practice between couples. If this is the case with you, know that your partner’s account is theirs to control.
Set your guidelines for spending
When you decide to run a joint account, always set a guideline for spending. You might be frugal with spending, while your partner might be liberal. Allocate how much per month should go to spending for needs first, then wants. This practice will help you stay on course toward your financial goals as a couple, and save you from running into unnecessary debts.
Even when you are running your individual accounts, it is also good to set guidelines for spending. This will help you know when to spend and what to spend on, and keep you on top of your personal finance.
Have an emergency fund
Create a separate account for any unforeseen circumstance that might happen in the future. Both of you can contribute a fixed amount or a percentage of your monthly earnings into this account. Emergency funds give you peace of mind, help you stay out of debt, and when there are no emergencies during the period, the funds can be invested to yield more money.
More importantly, ensure you don’t break this fund as the urge to do so will come.
Don’t keep secrets about money.
Ensure you openly share with each other, spending habits, earnings, and any debt being brought into the relationship. Understanding each other’s financial position can help you better plan as a couple. Also, don’t have secret savings, unless it’s for a surprise you are planning for your partner.
Go big with savings
You can never go wrong with savings, especially when you do it with the right partner. Saving is how you meet your financial goals as a couple, and it should be your first priority. You should spend, after saving.
Want to start saving now? Check out the various savings plans on the Reaprite app to find out the plan that best suits your couple financial goal. Download the app on Play Store or Apple Store today, and start saving to earn up to 16% interest on your savings.