When two people decide to move forward with life together, it is essential to keep in mind, when before, the importance of talking about money, goals, etc. The fact is that having a focus on couple financial planning ensures that the relationship for two is something safer, sustainable and healthier.
After all, many couples fight and even separate, not for lack of admiration or love, but because of the financial difficulties that arise and become unsustainable over the years. So, if there is any chance of avoiding this kind of wear and tear in the relationship, why not invest in a couple finance strategy, right?
In addition, this planning offers the opportunity to achieve individual and couple goals. Interested? So, follow this article and learn everything that is essential for the couple’s finances, in addition to 9 tips to apply at home!
Know when to start a couple’s financial planning
For some couples, it is more difficult to talk about money, especially when the agenda involves sharing some expenses or purchasing something together. However, the sooner the two can overcome this challenge, the better the result of the couple’s financial planning.
But don’t worry, it’s not in the first few months of dating that the two need to create some financial bond. However, it’s good to start talking about money and observe the habits of the person you are in a relationship with. As the relationship matures and you think about the idea of getting married or moving in together, consider doing the couple’s financial planning.
If a wedding party is held, for example, it will be necessary to calculate how much it will cost, in addition to defining the number of guests. After that, it is worth thinking about housing costs, whether they are going to buy or rent a property. It is also necessary to account for estimates of basic expenses, such as food, transportation, water and electricity.
Anyway, whatever the couple’s plan, it will be essential to manage their finances well so that they can succeed in this new phase. Thus, they will avoid late bills, financial difficulties and other problems.
Check out 9 couple’s financial planning tips to apply at home
Now that you understand the importance of making a couple’s financial planning and when to start your organization, let’s bring 9 practical tips.
1. Know the couple’s income
Many couples get excited about life together. Home, car, wedding party, social events. All of this is a challenge to the couple’s financial planning. When adding income, we cannot underestimate our expenses, which are also doubled. Therefore, many couples end up spending too much and getting into debt that is difficult to pay.
Therefore, get to know the couple’s income and set a spending ceiling and the right destination for the money.
2. Have a family budget
With the couple’s income in mind, it will be easier to determine the budget. To do this, add up all the financial inputs and even consider the small amounts, such as food stamps, Home Office aid and extra income. Then divide the values into categories, the essential ones:
In this division, it is relevant to count the minimum and maximum for each type of expense. As the values are divided, you will be able to see how much you can spend in each area per month, thus stimulating the economy to avoid going over the budget. It is worth setting up a shared table to closely monitor this planning.
3. List common goals
Having a couple’s financial planning does not mean that both will have to do everything together and lose their freedom. On the contrary, this practice can even be an impetus for them to be able, together and individually, to achieve great goals. Acquiring a home, for example, can be done through a joint purchase of property .
So talk about your interests and list each other’s goals. Also, make budgets and plans so that you can achieve whatever is the couple’s goal and individual goal. This strategy ensures that everyone’s dreams come true and avoids frustration.
4. Set priorities
To avoid unnecessary expenses, it is essential that the couple establish priorities according to their financial reality and consider what they do not give up in any way. For some, the wedding party is essential, but for others, taking on such an expense can rob them of a good night’s sleep.
The priority may be paying off and avoiding debt. Establishing this parameter is the first step in taking the necessary actions. When establishing priorities, think about your long-term goals and your current income. Thus, both feel contemplated throughout the relationship, as priorities are equated.
5. Define how the distribution of expenses will be
This practice of sharing the couple’s expenses without having fights is one of the contemporary utopias, especially when one side has a higher salary compared to the other. Therefore, it is essential that they have maximum transparency and the mentality that money is no longer one or the other.
Dividing expenses in half, when you are responsible for 60% of the couple’s income, is not the fairest way of dividing. Some couples share the expenses proportionally. Thus, they avoid financial inequality. Another alternative is to see expenses and income without divisions, with the surplus enjoyed by both equally.
6. Have an emergency reserve
The emergency reserve is a security for the couple, in case they go through, for example, professional relocation phases, health problems or have to activate vehicle insurance, without compromising the family budget. But consider that this reserve is really for unexpected expenses.
Therefore, it is only worth withdrawing in emergency situations. Do not use it for leisure trips or to change cars, for example. The emergency reserve can be in a joint investment account of the couple and the two have access to control and contributions.
7. Make financial investments
Investing the couple’s money is a practical way to improve their standard of living, to achieve goals more quickly and also to protect themselves for the future. So, study about the types of investments and set goals for each one of them: how to travel, change cars, achieve retirement. Consortia can help achieve all these goals.
Define the amount needed to apply every month, according to the way you intend to redeem it. This practice is stimulating so that both can save and seek new ways to earn more money, such as making an extra income.
8. Define values for superfluous expenses
There are people who advocate cutting superfluous spending. Here, the ideal is to have an estimated amount in the family budget so that the couple can spend on some superficial items, such as buying a set of bowls, a car accessory or a new outfit.
When the couple has balanced accounts and is able to stipulate a margin for this type of expense, the practice is quite healthy and helps with small achievements to keep the couple happy. But try to respect the limits and, when necessary, these expenses are the first to be cut.
9. Invest time to talk about money
Finally, regularly hold a conversation about the couple’s financial routine and align spending and goals. This is the best strategy for overcoming financial crises, closing the budget in the blue and also saving and investing intelligently.
After all, the “rules” need to be followed by both parties. Many times, it is necessary to remember the agreements and even make realignments. Otherwise, financial infidelity can become an issue between the couple. The act of living together and sharing financial life needs to be something coherent and comfortable for both sides.