Moving forward in a relationship doesn’t only mean emotional growth. Financial stresses are so serious they can be harmful to your relationship. When you’re looking to merge your finances with your partner there are a few things you might want to consider.
Here are our tips to help your relationship jump those financial hurdles…
Tip 1 – Communication!
Merging finances is a serious step. Some couples feel more comfortable with marriage than they do with merging their finances with their partner. Communication is a step that should really come before you make the decision. You need to be talking about your spending habits and get to know whether they’re a spender or a saver. Here you can identify what each of you might be willing to compromise on and what you’re not willing to give up. This makes it easier to set reasonable expectations for shared goals.
Talk about your financial goals. Share your individual goals and come up with some goals together. This will help your priorities align and get the finance conversations flowing. You may not be able to merge your finances yet, but you’ll get to know each others habits and learn how you could manage your finances together.
This stage is really about developing open communication and getting on the same page.
Tip 2 – The Staged Approach
Merging your finances can be a big decision, so don’t rush it. Once you’ve made the decision you can continue to take it slowly. For example, you can start by having a joint account with a savings goal. You can use it for joint expenses or saving for something you’d like to own or do together. If you’re not confident in handling money your partner might be able to help you and support you in learning how best to manage your own finances. But, you both need to be decision makers when it comes to your finances.
There’s nothing wrong with keeping separate savings accounts. Maybe you save or spend at a different rate, or you have different goals. Everything needs to go at a pace you’re both comfortable with. But when you have a family and there are more expenses for the kids and the house, you will need to get to a stage of merging your finances completely to meet those big expenses.
If it’s early on in the relationship there are ways you can protect yourself. You can restrict access by making the account two to sign. This could simply be so you’re not tempted to take that money out and you can both stay focused on the goal, or it could just be for peace of mind. Neither of you can use the money without the others consent. It will help you remember how much you want that holiday, car, house, or wedding.
Once you’ve made a major purchase together, like a house, this is where you’re finances will need to merge further. When you purchase the home you might want an offset account set up. It makes more sense for both of your finances to be transferred to that offset account to get the maximum benefit. Some banks will allow you do have separate offset accounts, even in different names, this is something you can ask your lender.
Tip 3 – Ongoing Communication
Yes, we know we have communication twice. It’s just so important! All finance tips for couples should begin and end with communication.
Regular, open and honest communication on a regular basis can ensure you remain on the same page. It’s really important that you constantly review both your finances and your goals as a couple. Be united in your approach towards finances and a strong future.
If you want more advice of how to merge your finances with your partner contact the team at Rise High here or leave your details below and we’ll get back to you!