Married couples share everything, but that does not extend to their finances. They keep their bank accounts separate, but money and marriage can go hand in hand. You do not need to wait until your big day to talk about finances. Money should be the subject of your discussion as soon as you start your relationship.
For instance, you should prefer going Dutch at the time of splitting up bills, or you can both decide to pay on alternative dates. However, do not be fastidious while footing the bill just because your partner has had a shade more expensive food.
Here is how you can easily survive your marriage without arguing over money.
Money conversations should begin as soon as possible, no matter how awkward you find them. Money discussions are avoided because people fail to realise the sensitivity of the topic, which may cause embarrassment and arguments. For instance, it is likely that you do not want to acknowledge the fact that you cannot keep up with the level of your partner due to income disparity. But brief talks about money will help you gain some perspective. Discussions do not have to be too long, though.
Transparency is paramount. Not only does it help build trust, but it also helps avoid arguments. It is vital to share your true financial position with your partner, so they can align their budget with yours to achieve common goals such as arranging a deposit for a mortgage. It might feel a bit uncomfortable, but this is called working as a team.
Another benefit of revealing your true financial position is that you can obtain some useful advice from your partner. For instance, if you have been struggling to repay instalment loans from direct lenders, your partner can help you come up with a robust strategy to settle the debt.
Since there are several common goals, you must ensure that you and your partner are in agreement, and this could be possible when you both have favourable financial situations.
Income disparity cannot be an excuse for you not to contribute to common goals. You must decide on a certain amount of money you would like to stow away, whether an emergency cushion is to be built or a deposit is to be arranged for a mortgage.
What goals do you want to achieve together?
Discuss goals with your partner and make a strategy that works out for both of you to achieve them. Working towards common goals will lead to fewer fights over money. However, it does not imply that your individual priorities do not matter. If you have outstanding loans from direct lenders for bad credit in the UK, you should settle them first.
At the time of setting goals and a plan to achieve them, you must ensure that your personal obligations will not affect your partner. If you have already racked up debt, make sure that you discuss it with your significant other before it starts affecting them, too. Try to nip it in the bud to prevent problems from turning worse.
There is no one-size-fits-all when it comes to managing your finances. Some couples prefer to keep their money separate, while others prefer to share accounts for bill payments. You can choose any method to manage your finances as long as it seems fair. Set clear expectations in advance.
Ideally, you should have separate accounts for your personal expenses, such as cosmetics, clothes, and the like, and a joint account for bill payments, building an emergency cushion, and other savings goals. In this way, you will not have to bear the obligation of your partner’s debt and personal purchases.
It is crucial to ensure that your partner does not spend money frivolously because otherwise, it can affect your ability to achieve your common goals as a household. Although you will be spending some of your money on yourself, you should discuss how you will handle day-to-day spending. Schedule a meeting once a week or a month to discuss money.
You can even discuss light money conversations at the dining table. This does not feel like you are being interrogated.
Marriage has a great implication on your finances. There is no doubt that you may be entitled to receive some benefits that cohabitants cannot get. However, at the same time, you need to ensure that linking your finances with your partner has certain risks.
For instance, you would be applying for a joint mortgage. It means if your partner fails to pay down a repayment, it will affect your credit score too. If your partner already has a subprime credit rating, linking your credit account to them will wreak havoc on your overall finances. Not only will you see a significant drop in your credit rating, but you will also struggle to borrow money at affordable interest rates down the line.
Complications generally arise when you part your ways and your partner stops making payments. Joint accounts should be handled very carefully, and both of you should discuss the repercussions before linking your accounts.
Once you have gained clarity about your finances, you should create a financial plan with your partner. The plan includes budgeting, saving, investing, and reviewing your finances periodically.
Work out with a financial advisor if you cannot make a decision. They will help you create a functional plan that works for you as well as your partner.
Money discussions are intrinsic after marriage. They will help you set common goals and achieve them faster. If possible, you should start discussions even before marriage. The sooner you start, the better it is.
