No two relationships are identical. After all, each person is unique and everyone has their own personal goals, hangups, priorities, and desires. As such, it’s no surprise that creating a budget for two people is more difficult than one. Pooling funds and compromising isn’t easy, and many couples have struggled to couples manage their finances effectively. This isn’t just a monetary issue either.
Money can be a big source of stress and can even cause friction in some relationships. With that in mind, here are four ways couples can couples manage their finances and get a handle on their money to make a fresh start in 2020. Check them out here:
In some instances, one person in a relationship will “handle the money.” This partner may end up being responsible for taking out loans, opening bank accounts, and setting a monthly budget.
While it may seem like a good idea, in theory, to let one person have this kind of autonomy, the reality is this setup will lead to trouble sooner rather than later. The person who’s excluded from the decision-making process will inevitably feel left out, and the person making all the tough calls may also feel they’re taking on too much responsibility.
Given that fact, it’s imperative for couples to sit down and discuss their financial situation on a monthly or bi-monthly basis.
When you’re involved in a relationship, you quickly realize that there are things that you value, things that your partner values, and things that you both value. Ideally, couples would have the same priorities and goals in regard to their long-term finances.
However, this is rarely the case. Some degree of compromise is required to form a functioning budget that protects you from bad money habits but also satisfies both of your needs.
Have the Tough Talk
Being in a long-term, committed relationship isn’t always easy. It requires lots of hard work and honesty. And sometimes partners have to have difficult conversations with their partners. Discussing topics like religion, possible relocation, sexual history (including the need for same day STD testing), or, in this instance, money isn’t exactly simple.
Yet, it’s crucial that partners come together and speak about why they make certain purchase decisions. Ignoring an issue like this will only lead to greater complications down the line.
Budgets are not iron-clad contracts bound by blood. Rather, they’re designed to help you live a happy and sustainable life. So if a budget isn’t working for you and/or your partner, don’t be afraid to adjust it accordingly! Tinker with your financial plan until you reach an amenable solution for all.