Discrepancies over the way in which your house finances are conducted can cause difficulties between couples. In fact, most couples find it very difficult to talk about finances and usually end up in disagreement on how money is handled.
Personal opinion and priority preference can cause difficulties and discussing how to use joint money can be further elusive to decided regardless of the amount of financial advice available.
Keep strict control over money spending
Knowing where your money needs to go is the best way for you and your partner to stay ahead of your finances. This is called financial planning or making a budget, and it’s the best tool to stop pointing fingers over who spends money unnecessarily.
Have similar financial priorities
The idea is to work as a team. You need to know your partner´s financial priorities and vice versa. Then you can combine your financial priorities into one list and can also help you organise any debts or you can enjoy a vacation together.
Separate/Joint bank accounts
If a couple shares a joint bank account then having an agreement for what the account can be used for purchases needs to be reached. This will help prevent disagreement on how the money is used.
On the other hand, having separate accounts may affect the whole sense of “team” that you and your partner want to have in the relationship. A common middle-ground can be to have individual accounts for personal use but also have an additional joint account where you can commit to a standard savings amount so it can be used as an emergency fund.
Make a habit of having regular financial discussions
Regular discussions can allow you to have an understanding of the other person’s position about money. Including how they conduct their finances when applied to common goals or debt such as bills, savings, etc. However, never rule out help from a financial counsellor if you see that all talking efforts are not showing any benefits.
Pay debt together
There’s no point of one partner paying a debt if the other is also struggling with a debt of their own. Make a plan to get out of debt together, you’re acting like a couple, and as such you must face all liability, even the one that existed before the marriage. This will allow you to prevent any increases on debts such high-interest so prioritising the debts can be important.
Be financially honest with your partner
Not being honest will lead to problems especially if you’re struggling financially. If one person is struggling and doesn’t share the problems then this stops the other person from helping or being aware of their joint financial security.
Have good saving habits together
Joint incomes can be a great place to start making deposits into a joint account as well as personal savings. Once agreed, you could schedule automatic deposits which will be helpful to ensure it’s regularly completed.
Experts have established that saving 10% of your monthly income can give you the financial strength to handle your finances and start thinking about savings fund, travel fund and even investments in the long run.
Make good use of unexpected money
Getting rid of debt as well as gathering as much money as you can, will help you decrease all the financial stress that couples experience at some point. Collect money that been loaned to friends and relatives or get rid of unnecessary insurance. Put it all in the savings fund, remember that the more financially secure, the more control you’ll have over your finances.
Alternative methods to get unexpected money is by claiming owed money through PPI or investments.
If you’re struggling for money and have an investment in your own property then you can unlock the wealth through equity release mortgages. This type of mortgage works differently from others and its interest roll up and the scheme ends when you and your partner die, or you go into long-term care.
The best financial tip you can have is to start thinking as a team without hiding any financial problems. Therefore, being open and honest will allow you to prioritise the debts and structure your joint savings accounts to get the most out of your joint income.