LOVE AND FINANCES
Love and finances can be hard to mix. Each person has different past experiences when dealing with money. If a financial plan is not communicated at the beginning of a relationship it can cause problems in the future.
Love and Finance: 12 Financial Habits that can cause a Breakup
- Keeping money secrets
- Hiding financial information or debt from your partner can erode trust and cause tension.
- Remember you are in this together so what the two of you do affects the entire family.
- Spending too much money
- Over-spending, especially without discussing it with your partner, can lead to financial stress.
- Ask yourself if the debt or the dwindling savings account is worth it.
- Not having a budget
- Not having a clear understanding of your income and expenses can cause disagreements and overspending.
- If you don’t know how much you have, need, or spend then who is controlling your finances?
- Failing to communicate
- Not discussing financial matters and making decisions without considering your partner’s feelings can lead to fights.
- Ask yourself why are you hiding it from your partner and where did this behavior originate.
- Ignoring debts
- Neglecting to pay bills or other outstanding debts can cause financial stress and lead to arguments.
- Sticking your head in the sand will not make the debts disappear.
- Not saving for the future:
- Failing to save for retirement or other long-term goals can cause tension and conflict.
- Supporting financial dependents
- Supporting family members or friends who are struggling can strain your resources and cause problems.
- Competing over money
- Competing over who earns more or who spends more can cause jealousy and hurt feelings.
- Making impulsive financial decisions
- Making impulsive purchases or investments without considering the consequences can cause financial stress.
- This can also add to your debt load which will hurt your family’s stability.
- Having different spending habits
- Having vastly different spending habits and values can make it difficult to agree on financial matters.
- Habits are hard to break but are necessary when you are mixing love and finances.
- Participating in the blame game
- Blaming each other for financial problems, instead of working together to find solutions, can cause friction.
- Not planning for the future
- Not planning for future expenses, such as emergencies or retirement, can cause stress and disagreements.
- Or living paycheck to paycheck will keep you up at night worrying about money and will strain your relationship.
Below are 12 ways to build a strong healthy financial future together.
Love and Finance – Try These Instead
- Create a joint budget
- Work together to determine your income and expenses and create a budget that works for both of you.
- Knowing your numbers helps you be in control of your money.
- Establish financial goals
- Identify your short-term and long-term financial goals and work together to achieve them.
- Having goals to work on will motivate both of you to change bad habits.
- Set aside emergency funds
- Build an emergency fund to cover unexpected expenses and reduce stress.
- This puts an end to living paycheck to paycheck and gives your family peace of mind.
- Divide financial responsibilities
- Decide who will handle specific financial tasks, such as bill paying and investing.
- Be honest about your weaknesses, if a task makes you uncomfortable let your partner know.
- Track spending
- Keep track of your spending to stay within your budget and identify areas where you can save money.
- Practice mindfulness when deciding what to spend money on.
- Discuss financial decisions
- Before making major financial decisions, have an honest discussion, review the options, and agree on a plan.
- Create a debt repayment plan
- Identify any outstanding debts and develop a plan to pay them off.
- Start with the smallest debt because progress will motivate you to continue.
- Save for the future
- Set aside money for retirement and other long-term financial goals.
- Research retirement options or find a trusted financial advisor to set up your investment.
- Working on becoming more financially literate by reading and listening to podcasts.
- Discuss spending habits
- Have open and honest conversations about your spending habits and identify areas where you can make changes.
- Consider a joint bank account
- Consider opening a joint bank account for paying bills and budget tracking.
- Decide how much each person will contribute to the joint account each month or paycheck.
- Plan for big purchases
- Save for large purchases, such as a home or car, by setting aside money each month.
- Seek professional advice
- Consider seeking advice from a financial advisor to help you reach your financial goals.
- Do your research so that you can know of the options available and have some understanding of how they work.
RELATED: Why Are Relationships So Hard?
In Conclusion
By working together to manage your money, you can build a strong financial future and reduce stress and conflict in your relationship.
