We’ve said it before—as much as we love LUV, it’s not the only thing that keeps a relationship healthy and strong. There’s a lot of room to grow together with your partner, and yep, that includes financially! Check out these 6 tips to build on your finances with that special somebody.
When you’re in a relationship, you tend to be swept away by the intense emotions of it all. And why wouldn’t you, since love does make you do the craziest things? But when the honeymoon phase is over, it’s high time to think about the long term and where you want this partnership with your loved one to go.
Even more relevant, during times like when prices for basic commodities are higher and recession is coming, you really have to think about the practical stuff alongside planning your future together. That includes finances and money! It’s a hard topic to talk about for sure, but it’s necessary to understand each other better.
When you’re both ready, sit your partner down and discuss the financial nitty gritty. It doesn’t have to be difficult, because saving is a breeze when you’ve got all the right resources and guidance. That’s where we help, so let’s talk about 6, baby! Read on to know 6 tips and tricks on how to grow your money as a couple.
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1. Assess your finances and create financial goals
Individually, you should check where you are financially. Calculate how much income you earn and think about the expenses you must pay for regularly, from bills to loans and credit cards. Put down all of your assets as well and their value, like your home/condo, jewelry, vehicles, and the like. A good way to assess your finances is also to calculate your net worth, where you add up your assets and subtract your liabilities. This’ll give you a good idea of where you’re at with your money.
Once you understand this, come together and discuss your financial goals. Are you looking at living together soon? Getting married? Or starting a family and having kids? These are the big questions you need to ask yourselves as you start saving together.
Financial goals don’t need to be this huge too. If you’re not yet looking at these things because your relationship is relatively young, you can start as small as buying a shared gadget, traveling together, or just trying to save more money as a couple. Learn each other’s priorities and spending personalities, and you’ll soon be able to start a financial game plan!
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2. Decide on a money management strategy that works
As every person has their own personality and perspective, their approach to money may be different as well. You and your partner will have to decide on how to manage your money together. Again, you’ll have to ask yourselves important questions.
Are you comfier with keeping your finances separate or combining them completely? If you’re married, consider getting at least one joint account for visibility. Another strategy is also having multiple individual accounts and joint accounts, although this could be taxing to juggle all at once. Yet another suggestion is for one partner to do all the spending, and another partner to do all the saving.
Remember that these are all just suggestions that you and your partner might want to look at, but of course, we do acknowledge that everyone has responsibilities and that might compromise your money management styles. It’s important to talk and be transparent about what both of you need to spend and save so that you find the strategy that actually works for you both.
The key is communication and honesty, luv!
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3. Set a monthly budget and spending guidelines
Once you get your partner’s money spending and management style, it’s time to make a budget! Pro tip: you can totally try using a money management app! Or plain old Google Sheets or Microsoft Excel would do, if you’re more into customizing your own formulas. Here, you track down all your regular expenses and savings.
A good strategy is the 50-30-20 scheme, where 50% of your income goes to the necessary expenses (like food, housing, utilities, etc.), 30% goes to savings, and the remaining 20% goes to wants. As a couple, it’s good for you to decide what each other’s needs and wants are, because it’s different for everybody!
It’s also super important to set ground rules for your spending. Talk about compromises, because one partner would prefer to go out for dinner, while another would like to stay home and cook. Maybe one would like to splurge on a weekend summer getaway while the other would rather save for a bigger trip on a more special occasion. You get the picture.
Set certain standards like going out just once a week or going abroad or having a nice trip once a year. Make sure both of you agree on it completely to avoid any clashing.
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4. Create an emergency fund and different funds for different purposes
As with the rule for any savings, you should always make an emergency fund! This will help you and your partner prepare for any unforeseen events that both of you may have to go through—like having to fix up your condo or house, health emergencies, and other things. Let’s not forget about inflation and the impending recession. The sooner you start saving with your partner, the better!
It’s best to put 10% of your income into this emergency fund. You can also try to create different “pockets” or “wallets” for different purposes, whether that’s to save up for a trip, a special occasion like a wedding, or just joint expenses. Tonik can help you do that with its Group Stash! You can open multiple Group Stashes with your partner and set goals or purposes for each one. One of them could be for emergencies, another for travel, etc. It’s a neat feature that can make the most out of your money!
Did we mention that Stashes earn 4% interest p.a.? Sweet, right? Individually, you can choose to get 6% p.a. with a Tonik Time Deposit (each customer is entitled 1 TD with this incredible rate).
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5. Invest a part of your income
So you’ve got your emergency fund and savings accounts, what’s next? Try looking for things you can invest in with your partner. This can be stocks, mutual funds, insurance, insurance with investments, and more. The world is pretty much your oyster here.
Go on the internet, talk with your friends, and do your research to see where you can invest some money. This will also help you prepare for retirement should both of you choose to retire together. It’ll allow you guys to be secure about the future and your old age.
Passive income is always a plus, so make sure to look for the best possible options that’ll work for you and your partner.
Discussing your finances isn’t some one-time big-time event. Nope! It’s super important to talk about money and where you’re both at financially at least once a month...once a quarter if you want to stretch! This will not just assure you of your future together, but it’s also a good exercise of trust in your relationship. It’s nice to know that you have each other’s backs when it comes to practical stuff like this.
Be accountable for each other and check whether you’re following all the standards and the budget. If needed, adjust the budget and allow room for change. Nothing’s set in stone, but your finances can be solid if you nurse it with as much care as you do your love.
Sources:
- 10 Ways Couples Can Finish Rich
- Couples & Money - Growing a Healthy Relationship with Your Finances
- 7 Money Management Tips for Newly-Married Couples
- 7 Ways Couples Can Plan and Invest Together
