Whether you are in a committed marriage or you’re in a long-term live-in relationship with your partner, it is important to establish your financial identity as a couple. Not only is this a great way to avoid big fights and tough conversations in the future, it can also help set you up for a financially stable and even abundant future.
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So read on if you want to learn how to manage finances with your present or potential partner:
When it comes to navigating joint finances, the first step is to learn each other’s habits and preferences about money. This means that you and your partner need to have transparent conversations about your individual incomes and expenditures; savings and debts; assets and liabilities, as well as your financial goals.
A conversation about money can be uncomfortable at first, but it can also help establish honest and healthy communication in your relationship. Remember, your life partner is not your roommate, so you will need to figure out logistics like who pays for what and plan out your financial goals in detail. Doing this early on will help you sidestep many fights with your partner in the long term.
If you and your partner earn similar salaries, it might be easier to decide on a budget and just split the financial load evenly. But if there are income differences, you might consider splitting expenses by a percentage of your and your partner’s salaries. Another way to go about dividing financial responsibilities is to assess personality and convenience. For example, the partner who is more timely with payments can pick up loan repayments etc., while grocery bills can be paid by the partner who actually does the grocery shopping.
For example, if you are planning to have children, you will have to make sure you already have or will earn enough money to sustain that big life change. Not only will you have to plan expenses for a newborn baby, but also for other related costs of having a child like a bigger home or their potential school fees.
This is a Partnered Post
First Published: Oct 26, 2021 12:23 PM IST
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