Tips to Manage Finances as a Couple

It is challenging to manage money when one is single and in a relationship. In fact, it can be trickier to manage money together as a "couple" or with our partner. There can be petty arguments over whether to keep a joint account, keep things separate, or pay for what. Often, couples end up in cash crunches due to insufficient financial management. Of course, CashLady is always there to help them out, but one can certainly avoid those headaches and arguments, provided they learn how to manage their cash well.

Here are some valuable and practical tips on managing your cash well together as a couple.

• Having open and transparent communications is the first and most essential step. This is the first step and an important one. As a couple, you should tell your partner about your financial status and your thoughts about money. Let each other know about any debts, loans, and money goals.
• Set your boundaries clearly- Let your partner know what you expect. Set a spending limit and make a joint decision before every significant buy. Have a plan for everything and stick to the rules you have set. This is essential to avoid any disagreements or arguments later on.
• Divide financial responsibilities – Based on your income and expenditures, divide the financial responsibilities. You should be clear as to who pays for what and be fair enough for the bills and payments. Make payments on time and feel responsible for each other. You must be clear on your finances and what you think is fair.
• Set up a joint budget – It is a good idea to set up a joint budget for day-to-day spending like groceries, eating out, and other expenditures. That can help you stay on track and avoid petty money squabbles. Each partner can put in an equal amount of cash for weekly or monthly expenses.
• Have separate bank accounts- While it may seem inevitable to have one shared account, risks are involved. Letting one partner control the funds is never a good idea. One should always have more control over their finances, and if one is open and honest with each other and finances, there is no harm in having separate bank accounts.
• Be equal partners with shared responsibility- As a couple, you should understand your finances and responsibility towards each other. No matter how much you love each other, the financial habits of the two individuals are different. Avoid a situation where one partner feels he is being taken for granted regarding money.
• Primary earner and an allowance – It is rare that both partners will have equal salaries or income. It may also be possible that one partner is not earning at all or has a meager income compared to the other. In such cases, both can keep separate accounts, and the primary earner can give an allowance on an agreed amount to the other partner. Just make sure that both feel comfortable with the idea.

As a couple, getting into a relationship and entering a new phase of life is exciting. Do not let petty money issues spoil the excitement of your life. Start with honest communication and set clear expectations right from the very start. Have a plan for things, and don't be afraid to speak your mind. Develop a mutual understanding of your finances and what you can or cannot afford. Follow the above tips to keep your financial affairs and your love life intact.

Related

• Are You Ready to Live with Your Partner?
• 10 Tips for Managing Money in Your Marriage
• Three Money Management Strategies for Couples