Nothing can kill the romantic mood quicker than the talk of money, yet it’s better to kill the mood than a relationship. Financial conversations are essential for financial intimacy because that’s the key to a long-lasting relationship. A lot of married couples end up in divorce due to the mismanagement of personal finances. You can avoid this conflict by making mutual financial decisions that can increase credit scores, gain high returns and be financially strong.
If you are in a committed relationship, planning to get married, newlyweds or a young married couple, you got to keep reading. This is for you.
Here are tips to build a strong financial intimacy.
- Take stock of the financial situation
Take time out to discuss the assets, liabilities and debts you are bringing into the relationship. Have a transparent discussion. This is an opportunity for you to come clean about your salaries, debts, and your spending habits.
- It’s yours, it’s mine and it’s ours
Are you going to have separate accounts? Or are you going to transact through a joint account? These questions need to be answered. Consider financial freedom by having individual accounts to use it however you’d like. Also, have a joint account for family expenses like rent, utilities, grocery, bills and so on. Whatever you decide, find out a method that works for both of you. Making financial decisions together strengthens your financial intimacy.
- Living together comes at a cost
Staying together means more expenses. That’s why it is important to take some time to discuss the family budget. While discussing the budget, ask these questions:
- What debts payments you and your partner need to make?
- What’s your combined income?
- How much can you save?
- Where can you cut corners?
- Which expenses can be eliminated altogether?
The answers to these questions will help you in making a more realistic budget. Keep a date every month to discuss your budget and revise it if required.
- Saving is divine
As a rule of thumb, you need to save every month. Saving encourages teamwork and is good for building financial intimacy. As a team, determine the amount you want to save every month. Set up automatic deductions from your salary account into your saving account.
- Do the split
If both of you generate monthly income, it makes sense for the health of the relationship to split the expenses. You can divide the expenses in half or spilt it on the basis of who generates more money. You can also come up different ways to split the expenses, such as one pays for the monthly expenses and the other saves. Whatever you decide, make sure that it is mutually agreed upon; otherwise, it could lead to misunderstanding and conflicts.
- Stay prepared
Unexpected expenses should not throw you off guard. Although you are usually prepared for expected expenses, the good thing about most unexpected expenses is that they can also be planned for. It is recommended to stay prepared with a line of credit which can be used as and when you require. MoneyTap offers a personal line of credit that can help you stay prepared for expected as well as unexpected expenses. If you are thinking of taking a vacation with your spouse, you don’t need to go through the hassle of applying for a travel loan, you can withdraw as much as you from your approved line of credit. If you want to set up your new home, your personal line of credit can come handy here too. Even in case of a medical emergency, this credit line can be a blessing. The bottom line here is whatever expenses you may have, expected and unexpected, a personal line of credit can help you stay prepared for them.
Love can be blind, but the reality of finances isn’t. Don’t let love impair your financial situation rather use it to build a solid financial intimacy.
If you want to be ready for the expenses that come with marriage, stay prepared with 24/7 access to credit. Download MoneyTap now.