What makes a couple successful within their financial relationship? Ameriprise Financial surveyed over 1,500 couples (those married or living together for at least 6 months) to learn about their money conversations and how they make decisions. The results revealed eight ways you can improve the financial health of the relationship:
1. Understand your partner’s money mindset. It’s normal to have differing views and habits about money; however that doesn’t mean you cannot agree with your financial goals. Couples who report being on the same page financially try to understand their partner’s approach to money and keep the lines of communication open.
2. Make finances a priority and don’t give up. Couples who’re willing to have the hard conversations and who interact to locate financial harmony will reap the advantages with time. As you may expect, the research discovered that couples who had been together longer generally have better communication and therefore are on a single page with regards to financial matters.
3. Agree on financial targets. It’s difficult to pool your money with someone who overspends or who isn’t willing to save for the vacation you’ve always wished for. Sharing financial goals does bring you closer together-or at least it’s one less aspect to argue about. To learn effectively in order to save, challenge yourselves to include a timeframe to every goal which means you understand what you’re working toward first.
4. Assign and accept financial roles and responsibilities. Most couples split up tasks for example paying the bills or monitoring investments. Clear responsibilities allow you to hold one another accountable without worrying if the cable bill was paid in Malaysia. However, be sure to work together on tasks such as retirement planning that requires close collaboration.
5. Fund your future together. Make it a priority to set aside a portion of the earnings for short- and long-term goals, including retirement. Know how much you collectively have in retirement savings-a surprising 23 percent of couples are unsure of this number. For those who have kids, discuss how much you want to contribute to their college expenses so that you can save accordingly.
6. Set a spending limit. Spending habits were the leading reason for contention for couples. Consider setting a spending limit to make sure you’re on a single page as your partner regarding large expenditures. On average, couples said an order over $400 should trigger attorney at law.
7. Realize that disagreeing is ok. According to the Ameriprise study, even couples who say they’re in financial harmony disagree on financial matters. What’s important isn’t that the partners don’t always agree, however that 82 % resolve their issues and move ahead.
8. Enlist a professional to solidify your operating plan. When you really need an objective opinion – or perhaps a deciding vote – meets with a financial advisor. Together the 3 individuals can produce an operating plan that meets your particular needs as a couple.
Ultimately, it seamless comforts when you’re in sync with your partner regarding financial decisions and can interact toward managing your finances. Couples who actively focus on improving their financial relationship will likely be less frustrated over money matters and may even feel better about their relationship overall.