6 Tips For Couples Discussing Finances

Managing finances with your partner can be challenging as every person have their set of needs and wants. Most probably, you guys end up in argument, fight, tension or even worse – breaking up.

But now you are thinking about the future with your partner and planning to discuss which is good idea to stabilize your finances and start building good financial habits to achieve financial freedom.

Here it is crucial for you to know more about the term “Financial Planning”. You can read this 12 Steps Guide To Simplify Financial Planning to understand it better.

Even thought, I am a finance blogger but when it comes to budgeting, saving money or even investing. I am not perfect but I try to avoid take too much stress. Here I just use my checklist so that I know what I am doing with my money.

1. Set A Positive Tone

Start your conversation with a positive attitude, respect, empathy and a willingness to listen and understand your partner’s point of view. Avoid blaming and criticizing game and try to focus on finding solution that can benefit both of you.

Before starting your conversation, select a time when both of you are available, relaxed and free from distractions. Do not discuss finances when any one of you have stress or during emotional rush.

Additionally, try to use “WE” language which will create a sense of inclusiveness. For example, If your partner is spending more then you will end up saying, “Your expenses are out of control” which is not appropriate. Instead you can use sentences like “We should make a budget for spending” or “Let’s find a way to lower our expenses.”

2. Be Transparent and Honest

You can foster an environment of trust and communication by sharing financial information, discussing financial goals, financial habits both positive and negative. Some example of financial habits are spending patters, saving tendencies or any financial problems you are facing.

Also create an environment where both the individual in a relationship can comfortably and openly ask questions and seek clarification. During financial discussion, there will be complex situations and terminology that may sound harsh but with good communication and trust, there will be no issue.

3. Create A Budget

Creating a budget and following it will help you in lowering your expenses and saving some good money. This will takes both of you a step ahead in disciplined and organized lifestyle.

As a couple, you can start budget by calculating total combined monthly income such as salaries, freelancing work, income from investing or any passive income sources. Now, make a list of all monthly expenses such as rent, mortgage, utilities, car insurance and loan payments.

Review what are your needs and wants to carefully remove unnecessary expenses without hurting each other feeling. For example, you may not need Netflix subscription but your partner want to have it. So, discuss these before taking actions.

I recommend you to use a checklist, spreadsheets or budgeting apps to track and manage your budget effectively. There are apps that allows to categorize expenses, set spending limits and provide visual representation of you financial progress.

4. Do Not Agree To Disagree

Every person (both men and men) see money in a different manner. But when you discuss about your financial goals and planning, you can understand and make informed decision (together). This way both you will be on the same page while making purchasing decisions.

5. Do Not Make It A Big Deal

As mentioned earlier, communication is the key for any healthy relationships. So, whenever you think that there is something not aligning with your (any one of you) plans then try to talk and see where is the problem.

Sometime, it may happen that you feel uncomfortable asking too many question but later on it becomes a huge problem or deal. And when it comes to money sometimes your partner is not as understanding as you are.

Also Read: 7+ Ultimate Ways To Get Free Internet Access

6. Consult With A Financial Planner

If you feel that you guys are not making any progress with your financial plans and goals then taking help from a third person will be worth it.

You can involve one of your family members or try to consult with a professional financial advisor to make things better. I understand that it may feel uncomfortable but consulting with a third-party can gives you a shared starting point, and from there you (together) may (not) make changes by implementing the plans.

How should bills be split in a marriage?

You can split you bills in a marriage by equal splitting, proportional splitting, percentage splitting and settlement of specific bills. Splitting Bills in a marriage is a personal decision that depends on many factors such as individual incomes, financial responsibilities and personal preference.

But it’s important for couples to discuss openly and find an arrangement that works best. Here are a few approaches that you may consider.

Equal Split

Many couples prefer to split bills equally which insures a fair distribution of financial responsibilities and creates a sense of shared commiment.

Proportional Split

Proportional Split creates a sense of financial fairness between couples. Here, Couple can choose to split bills proportionally depending on their income. For example, your husband/wife wants to pay 60% of the total household expenses (because they are making more) then the other partner can take care of the remaining expenses.

Percentage Split

If you are not comfortable splitting the bills based on income. You can also allocate a fixed percentage of your income towards shared expenses such as Netflix, Car Expense, and other miscellaneous expenses. For example, both partner can contribute 50% to the total household expenses regardless of what they are making.

Also, do read Netflix hacks that every Binger must know and if you have a car then this articles, 11 Ways To Save Money On Car Expenses.

Settlement of Specific Bills

As couple, you can divide your bills based on specific financial responsibilities such as health insurance, Mortgage, travelling expenses, outdoor fun, restaurant bills and other expenses.

Also read: How To PayOff Mortgage Before 40s?

Final Words

Talking about money with your partner can be challenging but it is a first step to build a solid foundation for healthy relationship. There will be instance where it will be hard to be on the same page with certain expenses but always look for an alternative.

Additionally, try to consult with a financial advisor for financial planning and relationship advisor to support you with misunderstanding during the conversations.