Money. When is it not a hot topic? Whether you have a lot of a little, money seems to be a touchy subject for most. Even worse, to this day it is still cited as one of the main reasons that relationships break down. So, I thought I would share my insight from working in finance on some ways I’ve seen couples from old to young, rich to almost poor find ways to keep money in the bank and out of potential arguments.
1. Have your own bank account. – You may think that this might be a way of the other person thinking you are keeping secrets, but, from what I’ve seen over the years, there is usually one partner that is better at saving than the other, and that person usually manages to squirrel away money. Thus, it’s there for a rainy day.
2. Have shared accounts of major expenses. – You should have your own account, but so that both parties in the relationship feel they are in balance, its good to have onemain account where all payments can come out of. That way, both parties can stay on top of the bills, but also see that the other is also contributing. (based on your personal agreement)
3. Pay it forward. – too many times in my career I’ve seen people just save and save and save, but what are you saving for? You may be gone before you get to spend it. From all I have learned, striking a great balance of saving and spending on yourself is actually best. Now I’m not saying shop till you drop, but it’s a nice gesture if both parties treat the other every now and again.
4. Just be honest. – Look, you’re supposed to be in this together, which means finance as well. So just like we all have different strengths in life, some of us are just better with money than others, it’s really just fact. Just be honest about spending, savings and salary because any lie big or small will probably get you in hot water.
So the next time you are about to have a fight over money, raid the piggy bank or just cut up your partner’s credit card, maybe it’s time you sat down and had an honest chat, and made a good financial plan.
Looking for advice, here are some great financial resources.