Money affects every facet of everyday life, even love where you find that personal finances can ruin a relationship where a couple gets into arguments relating to money in how you choose to utilise it whether by borrowing money or not spending it at all.
And since money plays an important role in relationships here are 6 principles that you can follow regarding money and your relationship.
Know that financial strengths aren’t always traditional
In any relationship, two people will have different strengths. There’s no harm in allowing the party with the most financial discipline or savvy to be the primary financial manager, while the other supports them and participates.
Learn to prioritise
He envisions back packing around Egypt and you want to do an MBA. Unless individually you both very financially well off and have the means to pursue those dreams both at the same time. You’ll need to decide on what’s important to limit having to borrow and accessing these funds elsewhere.
Understand each other to minimise arguments and misconceptions
Learn each other’s behavioural patterns, moods and preferences by disclosing debts, student loans, alimony, child support and any credit listings. Silence on these matters is dishonest and dangerous for your relationship.
Keep family out of your money
Neither of your parents should have a say in your finances as a couple and if you’re borrowing money to your relatives then it should be communicated to your spouse.
Discuss what ifs in case of death or incapacity
Ensure the necessary documents such as wills for discussion of estates. Know each other’s insurance details.
Stop the cycle of avoidance and denial
If one or both parties in the relationship fear talking about what’s going on financially and engage in the costly game of avoidance and denial. If left unchecked, these issues can grow and eventually contribute to a breakup or divorce. Therefore dedicate time each week to discuss financial issues where financial goals and goal attainment are part of the dialogue.