Being a couple isn’t limited to building a family and sharing beds alone. In fact, as a couple, you should make every decision about each aspect of your life together.
Today, we will give you in-depth details about the smart financial moves you can adopt with your significant other. Not only will these moves foster quality closeness between you too, but it also goes a long way to bring you and your partner the chance of being financially liberated.
After putting everything you learn from this article into practice, you will realize how much you’ve improved your financial situation with your partner.
What are the smart financial moves couples can make?
There are various actions and steps you can take as a couple towards achieving your financial goals. These steps will help ensure you have fewer debts, more reserves and also allow you to pay your bills on time.
Financial dates or talk with your other half helps a great deal. It gives you the avenue to plan the home budget together, allocate financial responsibilities to each other, and even set financial goals together. It also gives you the freedom to share some problems you might be facing at work and bring about some possible ways to solve them.
2. Joint saving
Operating a joint account is another step towards improving your financial situation with your partner.
A joint account allows you both to monitor your income, thereby preventing frivolous spending by one party, and enable more savings. It also eliminates any secrecy of income which in turn removes any form of friction between you and your significant other.
With a joint account, you can save up faster to clear your bills and achieve other set goals.
You might also choose to have separate accounts apart from your joint accounts. First, set money aside to pay joint bills, debts and savings. Then, whatever is left is saved away in your separate accounts for personal use.
Either you choose to practice a total joint account or partial, this move would surely be of help to you and your spouse when it comes to controlling your expenditure and improving your financial situation.
3. Create a budget
Tracking your income and finances give you two an overview of what you spend money on the most, and how you could reduce it. That’s why it is important to create a budget.
Steps to consider before creating a budget:
- Determine your household needs
- Create long-term goals
- Address your individual needs
- Set up budget meeting to track your progress
4. Set money aside for emergencies
Everyone should have backup or emergency funds in case of unforeseen-able events.
After you have taken care of all necessary expenses, 30% of the remaining income can be saved up for emergencies.
Being disciplined to not reach your emergency funds is tough but is necessary. In a survey done by Bankrate.com, it was found that 20 percent of Americans don’t save any of their annual income at all and even those who do save aren’t putting away a lot.
Ensure that the amount of your reserve can take care of your living expenses for at 6 months.
Saving money will not increase the value of your money as investing does.
According to a 2018 PolicyGenius survey, 20% of couples don’t manage their finances together. While you don’t necessarily need to combine investment accounts, you should at least be able to talk about them.
Sit down with your partner and set investment goals for your futures. Read books, articles, journals, or even sign up for investment meetings.
- See Also:
Investing in the Stock Market
6. Spend on yourselves
You are your source of income, and if you don’t take good care of your health, your financial status will suffer simultaneously.
It is important to allocate some of your income to cater for your well-being, plan fun trips with your other half to cool off the stress of working, and create time to go in for check-ups. This helps you and your partner improve your state of health and keeps you both in a healthy working condition.
A lot of couples fail to realize they can achieve their set financial goals by coming together to tackle any financial challenges.
Engaging your significant other in financial discussions, and involving them in decisions doesn’t only reduce the burden on you, it also allows you to make better decisions.
Money can cause conflict between couples. Applying these smart financial moves can help you eliminate these conflicts and have a better relationship with your partner.
What moves are you going to take?