Top money tips for couples
Whether you’re living as a couple for the first time or have been residing with your partner for some time, there can be times when finances cause concern, especially among those unaware of the incomings and outgoings.
Making sense of money isn’t as easy as some think, especially when living with another person. Fortunately, you and your partner can take some steps which are brought to you by Debt Relief Canada, a website from A.Fisher & Associates to ensure that you can gain control of your finances and plan for a better tomorrow.
Always communicate about finances with your partner
Financial mishaps can leave a person feeling embarrassed. Similarly, some may feel shameful about losing their job. Although the feelings are understandable, you must discuss any changes to income with your partner as soon as possible.
Finding a solution can be stressful, but failing to communicate the problem as soon as possible can be more stressful and strain the relationship. Communication is essential in every instance when couples are dealing with finances.
Create a joint account for bills
Following the financial discussions, there needs to be a process in place that allows you and your partner to pay bills on time and have a clear overview of the money left. Many will already know about the benefits of opening a joint account but now is a perfect time to open one.
A dedicated account ensures that you and your partner know outgoings and how much money each person needs to cover the expenditure.
If there are instances where one person earns more than the other, the share of the bills should be altered accordingly to ensure that all important finances like mortgages and utilities are paid first without leaving either person without money.
Be realistic regarding finances
Whether you’re applying for a mortgage or wanting to purchase a new vehicle, you and your partner must be realistic regarding outgoings. If you think there could be instances when the household income will be affected, this needs to be considered before committing to any form of finance.
Being realistic regarding incomings and outgoings ensures there is plenty of breathing room should financial circumstances change in the future. For example, if you’re searching for a loan, but the interest rates mean monthly payments could be difficult to manage, then other options should be considered.
Needing a cash injection is understandable, but couples should avoid creating debt that will worsen the situation in the future.
Set up a savings account
Many people can think that saving means transferring a set amount of money each month, but this isn’t always the case. If you have avoided opening a savings account, thinking it is pointless, some methods can help you save up, albeit over a more extended period.
For example, some accounts have features that allow the difference between the amount paid and the nearest dollar to be transferred into an account. Although deposits are small, they rarely affect the household budget and can add up after some time.
Those who do have the income available to save a set amount each month should search for savings accounts that pay high interest. However, it is essential to read the terms and conditions before committing to any financial product.
Tell the difference between needs and wants
When working hard, you and your partner need to treat yourselves, but when managing money, you must know the difference between wants and needs. The cutbacks you need to make can depend on what aspects of your lifestyle cost the most.
For example, is there a cable subscription that you and your partner can lower? Or is there a lot of money being spent on eating out? A few nights eating in could make all the difference when improving the financial situation of you and your loved one.
Good communication is essential when dealing with finances, especially when establishing the wants and needs of each person in relations. Creating a middle ground is necessary and can help both maintain a comfortable lifestyle moving forward.
Seek help if it is needed
Despite the many avenues available regarding debt management, some people can feel ashamed when discussing their financial issues. If this is your current mindset, or debt appears to be spiralling out of control, there is no shame in asking for help. In fact, it shows that you and your partner are facing the reality of the situation.
Although many organizations charge for this service, there are several debt relief options provided for Canadians by the Government, including debt consolidation and credit counselling. There can be instances when debt management plans affect the couple’s credit score, but it will be less detrimental than simply missing payments.
Once a couple starts to deal with their financial problems, they will soon find that managing finances becomes easier and can ensure financial difficulties in the future can be overcome.
Set some mutual financial goals
Gaining control of finances can take a lot of patience and willpower at times, so it can be a good idea to set some financial goals, so you and your partner are fully aware of why changes are needed. Financial goals can vary depending on your circumstances. Some may aim to reduce their monthly outgoings, whereas others may want to move house.
Having a mutual financial goal ensures that you are both putting in the same effort and are more likely to work together to overcome any obstacles.
If you’re starting to organize your finances as a couple for the first time, then goals do not have to be extravagant. It is crucial that goals can be met without affecting other aspects of your lifestyle, and starting small can be the perfect way of creating habitual behaviour that will benefit you both in the future.
Money can be an overwhelming topic at times and can cause upset and distress at times. However, couples that can communicate regarding their finances can be confident of dealing with any obstacles that arise while having confidence that they’re working as a team instead of against each other.
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