Is money causing conflict in your relationship? Money fights and money problems have been the leading cause of divorce for decades. Being in agreement about your finances is essential to a happy marriage. Let’s take a look at some of the biggest mistakes couples make in regards to money and the ways that these problems can be fixed.
1. Avoiding the “Money Talk”
Before you decide to enter into a relationship with someone or especially choose to move in with someone there are a few things that you should consider. Do you know how much debt your partner is bringing into the relationship? Do you know how much debt you are bringing into the relationship? Who will be paying for household expenses? Will you have joint or separate accounts? What are your spending habits? What are your spending priorities? These are just a few of the many questions you should consider talking about with your partner. Remember that talking about money in your relationship is an ongoing discussion. Keeping your finances on track is definitely going to make your life together much more enjoyable.
2. Hiding Money From The Other
Keeping secrets from your partner altogether is never going to help out your relationship. Whether it relates to money or not, a secret never has a good outcome. If you and your partner have already made it a priority to regularly discuss financial matters this will probably not be an issue for you. If you haven’t already, it would be wise to discuss your discretionary spending habits with your partner. You could set a spending limit and if you were to go above that limit you could decide on discussing the situation before any further decisions are made. Transparency is key, if trust is broken it can take a very long time to rebuild it.
3. No Budget
Having a budget sets the standard and foundation that couples are telling their money where to go and that they have the same goals. It is extremely important to be on the same page when it comes to financial matters in your relationship. Are you able to take care of all your bills? Are you setting money aside for emergencies? Are you keeping a savings account to set away money for your future, children, travels, etc? Talk about these things with your partner. It makes life much easier knowing what happens with your money and having your partner on the same page with you regarding financial decisions.
4. Lack of Planning
Do you or your partner own life insurance? Have you ever thought about life insurance? If not, now is the time. You never know what might happen. What if something happens to you or your partner? What will happen to everything you leave behind? It’s important to keep up with those things even if you are young. You never know what life will bring. If you already own insurance, make sure it is always up to date.
Having an open relationship with your partner when it comes to financial matters is key in avoiding money conflict. Keeping an ongoing discussion with your partner about your finances is essential in maintaining a good relationship. Knowing what happens to your money, who pays the bills, what you both want to invest in, what your spending limits are, and what happens in case of an emergency are all important factors that need to be addressed. Keeping those points in mind will save you from endless discussions that could have been avoided in the first place.
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