Moving in with your significant other is an exciting and joyful step. It comes with all kinds of benefits, but it also comes with compromises which include working out the household budget and savings plan.
Budgeting becomes a lot different when doing it as a couple compared to when you’re single. When you’re single, you pay your own bills, rent and pay for utilities. But when you’re splitting bills with your boyfriend or girlfriend, husband or wife, you’ll also have to explain why you bought another pair of watch when your kitchen’s sink needs to be repaired.
The way you spend money directly affects your partner’s financial well-being and vice versa. Hence, even if you live pay check to pay check, it’s crucial to create a financial plan to share expenses and still save money.
In a relationship, honesty is vital. Same is true when you talk about sharing what you have and what you owe. Financial dishonesty is the most common problem for couples. It can create a lot of issues so it is very important for both partners to know where he or she stands. Opening up about your finances can be scary and embarrassing, but it also signifies a milestone in your relationship where you both acknowledge and accept shared responsibility for your finances.
Another important thing to remember when creating budget with your partner is to set your priorities as a team. Budgeting is difficult especially when you have low income, but it is vital. Discuss your future goals as partners because they provide a roadmap for establishing financial priorities.
In order to have a good savings plan, you should include predetermined contribution amounts from each pay check toward long- and short-term savings goals. Having a vacation next year is one example of short-term financial goal while long-term goals include saving for retirement, a house or college tuition, which are big-ticket items that require more money and more discipline.
Understand more about financial planning for couples by reading this story about how a couple started saving for the first time in 10 years: https://finance.nine.com.au/2019/01/17/12/47/australian-open-anz-money-matters-couple-saving