Merging finances can be difficult, but it’s necessary when you are building a life with someone.
When you are ready to make this huge step, you need to follow guidelines to make sure that you are safe, protected, and in a healthy relationship with money and each other.
Women! You need to read these:
- Insisting on Equal Access to Financial Independence
- A Woman’s Place: Managing Finances in a Traditional Marriage
Here are six tips to make the process easier for you both.
Honesty Is the Best Policy
Like anything else in your relationship, there’s no point in being anything but honest about your financial situation.
You’ve made it this far; your partner will undoubtedly still love you. Even if you have some substantial credit card debt from your early twenties, you’re still paying it off. Just talk with them about it and figure out a way forward together.
This is also when you’ll probably discover that you have different philosophies about money; that’s perfectly normal and something all couples go through; just remember to talk about it and listen to your partner without judgment.
Combine Your Bank Accounts
It’s the most significant commitment you’ll make when combining finances with a partner, but it’s necessary.
A joint bank account will be the most official way to “marry” your money with theirs. It’s symbolic for some but can also create real accountability and make long-term shared goals much easier to manage.
And it’s another way you can solidify your commitment to one another!
Do What You’re Comfortable With
While it’s true that getting a joint bank account is vital for properly merging finances, you should only do what you’re comfortable with. Have lots of conversations about what you want this financial future to look like.
If something doesn’t feel right, you don’t have to participate until it does, and your partner should understand.
Create a Budget Together
Your budget will inevitably change after you make these money moves, so you’ll want a new one to reflect that. It’s vital you work on this together; no one person should have all the say in how the shared income is allocated.
It’s also wise to plan frequent, potentially even weekly, budget meetings where you check in with each other to evaluate how spending and saving goals are being met.
Talk About Everything
Money is one of the most challenging topics for couples to talk about. But that’s only because many couples don’t practice discussing it in a measured, matter-of-fact way.
Before, during, and after you merge your finances with a partner, talk.
Talk about your fears, expectations, potential pitfalls, dreams. You can and should put everything on the table. The sooner you can speak openly with each other about your money concerns, the sooner they get resolved.
Create a Future-Focused Financial Plan
With everything finally reeled in, now’s the time to start planning ahead.
Maybe you want to start traveling the world together. Maybe you’re planning for a family. Or maybe you get together and realize that neither of you is entirely sure what the future will hold. Regardless, these are all situations that you should start planning.
Readjust budgets, discuss spending and saving habits, and discover what’s most important to you both so you can live the lives you dream of having together.
