What happens after you decide to build a life together? You don’t just ride off into the sunset and live happily ever after. Soon enough, the inescapable reality of finances will come to the fore. Money is a sensitive subject among most couples; and one of the primary reasons why they clash. Want to avoid possible conflicts with your spouse? Wise up to these common money mistakes committed by couples and find a way to go around them.
1. Lack of transparency and communication
People are normally antsy about divulging the state of their finances, mostly because they dislike being judged. Ideally, you must first be aware of your spending habits, financial history, and beliefs before deciding to build a life with another. Share such information with each other to avoid financial rifts.
Trust, commitment, and communication are the essential ingredients of a relationship. Schedule a financial state of the union meeting where each spouse shares information about his or her past money-related experiences, advises Bambi Holzer, author of Financial Bliss: A Coupleís Guide to Merging Money Styles and Building a Rich Life Together. Next, establish ground rules on how to address money matters. Having regular financial dates, says Holzer, will help improve money-related communication.
Rommel Macapagal, equities broker licensed by the Securities and Exchange Commission (SEC), says, “My wife and I have been married a little over two years now. Early on, we talked about our financial histories. After that, we set plans and broke them down into achievable portions with matching timetables. It’s important to make goals realistic, achievable, and time-bound. As with all other things, communication and being on the same fiscal wavelength is the key.