HNE Staff Money matters may not be on top of your topics to discuss as a romantic couple, but discussing your finances can set a good foundation for financial harmony. Considering the financial stress this pandemic has caused, money disputes may put relationships at risk. If you want to set up your marriage for financial success, avoid committing the following mistakes:
1. Not Discussing Money
Before you get married, don’t hesitate to talk about your financial goals, debts, income, and budget with your partner. Have an upfront discussion with your partner about money, from existing debts and financial obligations to future retirement and savings goals. Think about how your financial future is tied with the person who’s going to be your spouse.
2. Failing to Plan Your Financial Future
If you don’t discuss money, you can’t expect to talk about your financial future. Financial discussions should include talk about goals for owning a family home, raising kids, sending your kids to college, saving for emergencies, and retirement. Be more specific about your goals, budget, and timeline. You can establish a financial plan while you plan your wedding day.
3. Leaving All the Financial Decisions to One Person
It might be more convenient for one partner to manage some of your household bills, but both of you should have a clear picture of your household’s financial situation. It helps prevent resentment or unpleasant surprises later when money issues crop up. Putting two heads together to resolve money problems is also better than letting one person manage everything.
4. Not Setting Up a Safety Net
Couples often end up blaming each other when an emergency happens that requires money, such as having a sick child or getting into an accident. You can’t expect insurance to cover everything. Not having enough savings for such occurrences can cause anxiety and ugly money disputes. Save three to six month’s worth of family expenses to remedy this. Once you hit the mark, it’ll be easier to see what other financial goals you can conquer next as a couple.
5. Keeping Money Secrets
Indulging in a shopping spree or gambling a night away at the casino might not seem that bad at first, but it can be a problem if your partner doesn’t know about it. It becomes an even bigger problem if it leaves you with a large debt that you need to pay as a couple. Your financial security will be affected, which is why some might consider this financial cheating worse than physical infidelity. Other money secrets that may ruin your family include hiding your real financial situation and a secret savings account.
6. Setting a Budget That Isn’t Suitable for Both Partners
Most couples choose to combine their finances, but you should discuss how much each one pays for what and the basis for such an agreement. It shouldn’t mean that one controls the household finances because her or his take-home pay is bigger. Talk about the budget for your constant expenses such as rent or mortgage, insurance, and car payments. Then, develop a budget for variable expenses, such as groceries, dining, cable, or college.
7. Using a Credit Card for the Wedding or Honeymoon
If you want a grand wedding and romantic honeymoon, try to save up for it instead of charging it to your credit card. Save for it long enough for you to reach the amount you plan to spend. It will also give you time to look for the best deals, from your wedding dress and wedding planner to your honeymoon trip and accommodation.
8. Failing to Budget
No matter how much your combined take-home pay is, everything will be a financial mess if you don’t set a budget and follow it. Put your heads together to create a budget agreeable to your household and personal financial situations. Talk about your shared expenses and personal obligations, then compromise if your current income can’t pay for everything. Budgeting should be a shared responsibility.
9. Not Paying Attention to Financial Red Flags
Your partner’s attitude towards money really matters. If you don’t want to spend the rest of your life fight over money all the time because of your different approaches to addressing financial issues, don’t ignore the red flags. These may include being a shopaholic, overspending, bad credit score, or avoiding discussions about money. If they have made financial mistakes in the past but are actively fixing them, help them overcome those mistakes and start over.
10. Ignoring Debt
The sooner you can take care of your debt, the better. If you still decide to get together despite each one having a debt, don’t ignore your financial obligations. Tackle it before taking out a mortgage for a home or raising kids. The best time to try and clear your debt is when you still have extra funds to work with. Once you succeed with this goal, you can train your eye on your next financial goals.
Conclusion
Be more open to talking about money until you make it one of your regular topics to discuss at the dinner table. The more you discuss financial matters, the less stressful the topic will be for you. It’s a good start to avoiding the financial mistakes mentioned above. Don’t make the same mistakes if you want to establish a stable and strong financial future for your family.
Moreover, do you know how much money you’re wasting every day by doing things you don’t realize are financially draining? Learn the shocking ways you’re wasting money. Pay attention to it to avoid losing money.
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