Introducing.... The five secrets of a successful relationship where money is concerned.
1. Open discussion with no Secrets As you are courting you may experience many topics of conversation, many much more taboo than money… such as sexual topics, politics or even religion. All of these seem to be much more readily addressed than Finance. The clear start should be a fully open conversation about your full financial situation. Discuss your salary or wages, your debt, your spending habits, and any other obligations you may have financially. Then set Goals with your partner discuss your dreams and visions. Find common ground and build on those concepts.
2. My money is your money Let’s not draw lines in the sand and create boundaries. Even if one partner is the sole provider of the home does not mean that that person should have all control over all financial decisions. Use your money evenly give a little take a little, after all you are working for the same goals hopefully.
3. His, hers or ours? To combine or not to combine that is the question. If you are a couple without a lot of assets, a joint account can work well. This allows you to develop your own financial momentum as a couple. If you’re a more established couple or going into a second marriage, separate accounts may make sense. You both may already have successful careers and financial systems set up that you want to keep intact. One more option is to have a a bit of both words joint accounts for living expenses and household items and separate accounts for personal spending. For example, you could put 10 percent of your income in personal accounts and put the remainder in the household or joint account.
4. The only thing that stays the same is change As you grow into your marriage, your money concerns are likely to be change and grow as well. They will be different from those you had when you first walked down the aisle. You need to discuss these issues; you should discuss your big money picture at least once a year and potentially have a budgeting meeting to discuss smaller monetary topics monthly. Make sure your plans mesh.
5. Plan for the future even the tough topics
There are some topics that nobody likes to talk about but that need to be discussed, especially when children are involved. First and foremost, make sure you have a will. You also want to consider life insurance to provide for your family if you pass on. Finally, talk about a prenuptial agreement if one of you has kids or you’re entering a marriage where one partner has a great deal more in assets than the other.