Getting your finances right as a couple is a foundation for a successful partnership
Various studies show that financial matters are just as vital as compatibility for a healthy and stable relationship. Lucky for millennial couples, they are smarter and frank about money matters than the baby boomers.
Before you tie the knot or make it official with your partner, disclose your financial skeletons in the proverbial closet. They might thank you for it.
- Think Hard On A Joint Account
Joint account might be a testament to your commitment but don’t get bullied or bully your partner into opening one. Every person handles finances differently. If you and your partner’s money values are polarising, consider keeping your finances separate.
There are many instances where a joint account has ruined the other’s credit score. Make sure you both know each other’s financial behaviour before opening a linked account. If you have an unfavourable credit score, it can affect your partner’s capacity to take a loan.
- Don’t Be Secretive Regarding Finances
Having skeletons in the closet can be detrimental to any relationship, especially if it is a financial one. Talking about finances is never easy, but neither are debt problems when you are planning on spending a lifetime together.
Hiding a debt history or large purchases are sure-fire way to create friction in any relationship and can seriously impact your future.
Your finances will not always be the same, the market and jobs today are more interconnected and less predictable. Illness or unemployment can easily drain even the heftiest bank account. Plan ahead, plan for a financially secure life. Prepare for any such unfortunate circumstances through smart long-term investments.
Opting for life and health insurance should be one key investment that every millennial couple should make. If you have purchased a new home together, add home insurance to the list. If you have kids, open a trust fund and appropriate education policies in their name. It will not only set them up for a stable future, but will also help you sleep better at nights.
If you are in your late twenties or early thirties, retirement might seem ages away. You might think late forties is a good time for it, however, it isn’t a wise approach.
The current economy is prone to inflation; you will need to pay higher amount even for the basic necessities. Also, take into account the kind of lifestyle you would want post-retirement and plan your goals accordingly.
Yes, that question is more common for couples than you think. Discuss how you plan to split the bills and take care of any other financial responsibilities you might anticipate in the future.
Living expenses like electricity bills, everyday supplies, rent and amenities can be steep. Plan to tackle these expenses like a team. If both can’t manage the books, outsource it to a professional.