Whether you're single or in a relationship, build toward your future by defining your goals, budgeting for splurges and getting started with investing.
KNOW YOUR GOALS
Setting a goal is the first step in any kind of money decision. After all, money is just the means to live the life you want.
IF YOU’RE SINGLE: This is the fun part: Grab a glass of something you like and write down goals, whether it’s going on a dream vacation, buying a new car or maybe pursuing the business idea you’ve been chewing on forever. Don’t second-guess your ideas — having them all in front of you will help you prioritize the goals you truly value.
IF YOU’RE SINGLE: Knowing what you value means you can cut spending in other areas. At the same time, the “wants” category lets you stick to a realistic budget so you don’t feel like you have to give up on splurges.
IF YOU’RE PAIRED UP: You’re probably aware of whether you and your partner have different spending and saving styles. Use your strengths and weaknesses to hold each other accountable to the budget, Moore says. Spenders and savers can draw inspiration from each other, for example.
Whether you have separate or combined accounts, you can agree to each have some money to spend as you wish (like on a Valentine’s Day treat for your partner). The key is to have an open dialogue about it, Moore says.
INVEST IN YOUR GOALS
Once you know your goals and what it will take to achieve them, figure out your “investment strategy.” This just means how quickly you want your money to grow for your goals.
A quick heads-up: Investing for goals isn’t the same as saving for retirement. Make sure you have retirement savings in place first; check whether your workplace offers a retirement account and company match. “The most important thing is to just get started. Time is one of the most important factors when it comes to compounding your initial contributions into significant wealth,” says Eric Roberge, a certified financial planner at Beyond Your Hammock in Boston.
IF YOU’RE SINGLE: Investing doesn’t have to be scary or mysterious. Robo-advisers have made it easy to get started even with small amounts of money. You can answer a few questions to set your risk tolerance and invest your money accordingly.
