Love is in the air, but is it in your wallets? Whether you realize it or not, when you enter a relationship, marriage or partnership, you may become a dynamic duo fighting off financial foes. Working together, your power is mightier, and your defenses are stronger.
Managing money with your partner is a skill you can master. Our guide will walk you through the dos and don’ts of handling your finances as a team. Grab your partner, perseverance, and pen. Let’s get into it!
1. Money Talk: Start and Stick With It
We mentioned perseverance, right? Here’s why: You have to be transparent and discuss your finances with your partner.
Start by having a candid conversation about money, including your positive and negative experiences. Discuss your financial goals, spending habits, and any existing debts. Share your credit scores. These conversations will serve as a strong financial foundation for your future together.
2. To Merge or Not to Merge: Couple Accounts
To merge or not to merge bank accounts is your next challenge to beat. Your decision depends on your individual financial habits and goals. Joint accounts can promote transparency and shared responsibility, while separate accounts offer financial independence.
Whether you choose a joint account, a separate one, or a mix of both, ensure that your arrangement suits your individual needs and encourages trust. We make creating a joint account easy. Select ‘Joint Account’ when you sign up online or swing by a branch to open your joint account together.
3. Your Budget: A Guiding Light
Budgets can sound daunting, but in reality, they’re like a guiding star. Tap into WiseOne Insights for personalized insights on your spending habits, then use a handy money management tool to set a monthly budget that covers essential expenses and leaves room for fun. Make sure to revisit and adjust it as your circumstances evolve.
Remember, your budget shines down on you when you are unsure of your financial decisions. Consult its light to illuminate the right path forward.
4. Spend or Save: Preferences Aligned
Big spenders and big savers can clash in a relationship. One may want to splurge on the weekend while the other may want to save for a rainy day. The key to finding balance is compromise.
Both partners should respect each other’s financial preferences and work together to set boundaries that accommodate both saving and spending. This might include creating budgets for each person or finding a middle ground that allows both to enjoy the things they value most while ensuring long-term financial security.
5. Marriage and Legal Matters: Tax Benefits
For married couples, tax benefits can be a major assistance including lower tax rates and deductions. Understand the tax implications of your union and capitalize on them!
On the other hand, non-married couples might need to consider legal agreements like cohabitation contracts or domestic partnership agreements to protect their assets and define responsibilities in case of a breakup.
6. Rainy Day Funds: Embrace Emergency Savings
Spendthrifts take note! Rainy days happen, and it’s always better to be safe than sorry. Build your OneUnited BankBlack Savings emergency fund to cover unexpected expenses like home repairs, car fixes, or medical surprises.
7. Vision Board: Plan Your Future
Now that you are aligned, you can dream bigger. That’s right! You know your strengths and which weaknesses to work on as a couple. Now, you can set ambitious goals to achieve together.
Create your vision board where you identify your dreams as a couple, whether it’s buying a house, traveling the world, or starting a family. Working toward shared goals strengthens your bond and keeps you motivated!
8. Dream Dates: Track Your Progress
Keep your dreams alive by tapping back into that perseverance we mentioned and planning times to sit down and talk about your progress. Set the mood, gather your information from WiseOne, and get cooking on your financial health assessment.
Review your budget, track your progress, and brainstorm ideas for saving and spending together. It’s the date night you never knew you needed.
Find your magic stride by working through our guide towards building a fiscally powerful pair. Stay the course, maintain transparent conversation, and don’t forget to have fun along the way as you make smart money moves!
