As we celebrate the month of love, here are a few tips on the benefits of planning financial issues together as a couple.
Various researches conducted globally reveal that money issues are one of the most common causes of arguments among couples and in some cases of divorce.
Having open and honest communication around money management, you and your partner can share personal goals and concerns, understand each other’s financial habits, establish alignment, and agree upon a shared vision. Money is an important aspect of our daily lives so dealing with it positively can only strengthen your relationship.
We all have different expectations when it comes to allocating the financial responsibilities in a relationship. One partner may think it best to split the bills in half regardless of income, while the other may think it’s fair for the higher earner to cover a larger proportion of the bills. Alternatively, another partner may see it best to combine resources and budget all expenses from this combined income.
Life circumstances change, one partner may have a higher income today but lower in the future. Before kids and after kids financial handling will also be different therefore planning together is important to remove any ambiguity about roles and responsibilities.
Planning together helps to draw on your different strengths and combine them for an effective financial roadmap. For example, one partner may be stronger in paying bills on time so they should be tasked with that, the other maybe stronger in saving so they should drive the savings goals.
The key point is that when you combine strengths you accelerate your pace towards your financial plans as a couple.
Planning finances together often prompts conversations about your future together. Understanding what you each aim to achieve during your active work years and your ideal retirement helps you work together to achieve your dreams of a common future.
5. Planning together helps you prepare for the unexpected
Planning together enables you to have deep conversations about unexpected events like death, retrenchment, illness and other life altering events that may occur. Ultimately it enables you to come up with a joint plan that could include things like, funeral assurance, life insurance and estate planning.
If you have not been planning together, take time to discuss with your partner on how you can begin this positive habit. Remember when your planning involves insurance matters, the Firstlink team will be here to assist you.
