Are you planning to combine finances with your significant other? It's a good idea to talk about money before you marry someone or are planning to get into a serious relationship. It will help both of you understand each other better and avoid awkward situations in future. Here are five reasons how this practice can enhance your relationship.
- It will enhance understanding
Talking about money might sound unromantic and business like, but discussing spending habits, savings and debts will help both you to understand your financial situation. Most couples face conflicts and disagreements later in the relationship. Talking about finances at the start will help both you to resolve any such disagreement, this will build your relationship skills which you both will value together as a couple.
- It will develop connection
Before combining finances, couples should discuss the pros and cons in comparison to keeping them separate. A research has pointed out that half of the couples choose to combine accounts, while the other half chose to maintain separate accounts. This will help both of you understand that now your financial habits relate to your partner, whether the impact be negative or positive it will affect the life you plan to build together.
- It will help you in planning your short and long term goals
It's better to be open with your partner about what are your future financial goals. This discussion may include questions like.
- Are we able to save at the month end?
- Are we paying all bills on time every month?
- What about insurance?
- What are our retirement plans?
- It will help you enjoy life
Planning a secure and solid financial future doesn't mean downzoning enjoyment. When couples understand each other’s financial habits they automatically learn to prioritize and manage day-to-day expenditure like utility bills, grocery, housing cost. This helps you to figure out where splurges fit in.
- It will Help to Avoid Financial Surprises
Everyone loves happy surprises like a surprise B'day party or a candle light dinner, but suddenly realizing that you won't be able to pay the monthly bills or can't pay the EMI of a loan you took. Being clear about money and sharing financial information with your significant other will help in avoiding any such surprises.
How to Begin?
- Be prepared, this conversation will surely be awkward, but promise yourself to have it anyway.
- It's better to pre-arrange the conversation timing, this will ensure you both are mentally prepared.
- Most important thing be open with your partner about your spending and saving habits and discuss the goals you aspire to achieve together.
- Work towards achieving your goals, arrange annual or quarterly meetings where you both can discuss whether you're on track to achieve your financial goals.