Mummy says …Relationships can be tricky on so many levels and every relationship comes with its ups and downs as two people try to find a happy compromise. Make sure your relationship is in the best possible place by communicating and discussing all the important things such as money, however daunting that may seem….
Did you know that money is one of the main causes of breakups within relationships? It might seem surprising but, when you think about it, dealing with our own individual finances can be stressful enough, so when you bring someone else into the equation, tension can quickly build up. One of you may be a savvy saver, and the other a superb spender!
It is so important to make sure that your relationship is as financially stable as possible, and stays that way.
Mountain Ridge Associates
If you have various debts in different places, it can help you to keep track by consolidating them into one loan with less interest. This will help you save money too and see exactly where you are with your finances.
Here are some other fantastic tips to help you make your financial relationship with your other half the best it can possibly be…
1.Establish your attitudes to money
It is natural that you and your partner will have differing attitudes to money and finances. To avoid this becoming a major issue, it is important to find out where you agree and disagree, and how you can both consider each other’s attitudes in order to form a united approach.
2.Be honest and open
If you have had a few financial issues in the past you are certainly not on your own. The most important thing is that you are open and honest about your financial situation with your partner so that you can face any problems together. It is essential they know your situation so they can support you in any way they can.
If either of you does have any areas of concern, you should be aware that if you enter into any financial commitments, such as joint bank accounts, they will impact on both of your credit reports. Take some time to sit down together and go through each of your credit scores. As well as providing the perfect opportunity to identify any issues or potential problems, it will also give you an idea of how likely you are to secure joint credit when it comes to applying for mortgages, loans, etc.
4.Establish ground rules
If – or when you do decide to have joint financial responsibilities, it won’t be OK for either of you to have a spending spree without consulting the other. Once you make a financial commitment to each other, your money related actions will have an impact on each other, so it is important you are aware of each other’s feelings and opinions.
One good idea is to introduce a spending limit for each of you. Anything that comes under this amount can be bought by you or your partner without having to consult the other one. But if you are tempted to buy something that is over the set limit, then it has to be discussed and a joint decision reached.
Don’t forget to talk about and decide how to pay for household bills. Will all bills be split 50/50, or will some be the responsibility of one or the other? This may depend on each others earnings, if one of you is not currently working, or in training etc. There is no right answer, it is a case of finding the balance that works for you.
Do you have any other tips for sorting your finances to add?