Money can give immense happiness; at the same time can be the biggest reason for stress too. When you are single, you are not answerable for your income and expenditures, but when you are in a relationship, many things are dependent on money. Several questions arise like
One joint account or two separate accounts?
How to divide expenditures?
Who will pay for what?
Financial planning plays a crucial role in maintaining harmony between couples and leading a peaceful life. Financial Planning also reduces stress and gives a clear picture of the future expenses to be done.
Financial Management is a skill that is not taught, but acquired in life through various experiences. Therefore, many people go through various emotions in the process of mastering this skill.
These may include; Frustration, Helplessness, Guilt, disappointment, anger and many more. Being open to your partner about finances strengthens the relationship and always makes things easy. Using your money wisely is an art. Few of the following steps may help you learn this art tactfully:
Create and allocate budget for everything from toothpaste to your retirement. Allocating a budget always helps to structure the monthly income and creates a bracket for unforeseen expenses.
Always be very clear with your expenses management. Every couple has a different approach towards finances, and within a couple there might be different approaches as well. Some couples may find joint bank accounts as feasible while some may go for individual accounts and together contribute towards a joint account.
Don’t be anxious
According to a survey, financial mismanagement or financial instability is one of the biggest reasons for the dispute between couples around the globe. Another reason is the control of finances between the two as to who will be the primary decision-maker in financial choices.
Financial stress paves the way for many other stresses in couples. It is vital to minimize individual disagreements and reach a common conclusion.
Joint vs. separate Accounts
Relating to the financial decisions, a contemplation of separate bank account versus joint account should be resolved upon talking from Day 1.
A couple with two-income can go for two individual accounts where both can save in their respective accounts and simultaneously have a joint account to fund shared expenses. It is one of the simple approaches to maintain financial stability and at the same time having your financial freedom.
A joint account requires the same characteristics that a relationship requires which are of transparency, 100% trust and full commitment towards a common goal.
Being a couple or with a single status, it is crucial to track the spending incurred every month and be aware of the expenses. Being in a relationship requires the consent of both the members, and it is nearly impossible to set a budget with just one member.
With an honest approach and efficient budget analysis; couples can keep a track and mould their financial conduct. A fixed financial budget also helps to reduce any confusion, frustration and stress arising from money management.
Be open about your financial situation
Honesty and openess about your financial and debt status is one of the factors that helps manage the finances effectively. To avoid any unwanted expenses financial burden in future, be open to your partner about your current ongoing credit history, loans and debt.
Also, it is essential to let your partner know about your spending habits and financial goals. Talking about your preferences and feelings will help the other person to understand you in a better way and prioritize the areas that are important for you both. The more you are open, the more you grow and learn together.
Since nowadays, easy loans are available without any guarantor; many people have liabilities on them in the form of loans. It is always good to be clear and transparent with your partner so that future financial plans can be made accordingly.
Division of financial responsibilities
When talking about a couple, it is always good to divide the work, responsibilities and most importantly, the financial burden. Sharing of financial responsibilities ensures harmony as it is clear with who is responsible and in charge of what and how?
Apart from contributing to a harmonious relationship, it also contributes to minimizing any late payment and the burden of unforeseen expenses.
Happy Financial Life
Managing finances in a couple can be difficult at times and stressful too, but focussing on the solution and keeping clear communication between the two prevents any confusion and hassle.
It is a process of continuous learning and is essential for both individuals to be open and honest towards each other and their financial approaches. With proper planning and rust, it becomes easier to manage finances. The clarity in approach brings harmony and peace in your financial life.