Personal Finance ─ Managing your finances could already be challenging as it is, especially if you have not yet sorted this crucial aspect in your life. However, things can suddenly become complex when you enter into a serious relationship and, more notably, a marriage. All of a sudden, you not only have to deal with your own finances, but you also have to consider your partner’s financial well-being ─ as it will now affect your life moving forward, for better or worse.

In the US, financial problems and disagreements account for the highest reason for filing a divorce. Thus, this topic, although sensitive, must be discussed thoroughly with your significant other. Yes, it will certainly not be easy and simple as two different people have two unique financial situations. But fortunately, there are already tried-and-tested financial principles that could help you and your partner weather this transition period and, more significantly, bolster your existing relationship.

Tried-and-tested Financial Principles to Consider

There are numerous financial principles expanding from the most basic to advance. Here, we will lay down some of the most practical and easy-to-implement principles that could tremendously benefit your relationship.

1)         Understand your Partner’s Financial Mindset

First and foremost, it is essential to understand your partner’s philosophy in his or her finances. Explore your partner’s upbringing and reason for doing things related to his or her financial well-being. Just be mindful of how you ask questions and of course, be a loving listener.

2)         Create a Safe-space to Discuss Each Other’s Financial Situation

After understanding your partner’s financial philosophy, consider establishing a safe space to disclose sensitive financial information. His/her financial situation and history reveal so much about what you both can work on.

3)         Create a Financial Goal for The Relationship

Having a financial goal that both of you agree on and look forward to keeps the relationship grounded and headed in the right direction. Also, discuss your long-term plans, such as owning a property, starting a business, buying a vehicle, or saving for your children’s education.

4)         Create a Budget for Short-term Expenses

Now that you have an established long-term goal. Discuss setting a budget to account for your expenses. This could include many things, such as your monthly bills for your relationship necessities, setting up funds for emergencies, or even going out and celebrating an important milestone.

5)         Consult a Financial Advisor for More Complex Topics

Lastly, depending on your financial expertise, you may need to consult a third-party expert when it comes to more complex financial topics such as the suitable investment for both of you, retirement and estate planning, and even taxation.

The Wonderful Byproduct: Strengthening your Relationship Moving Forward

Implementing these principles in your relationship could have the added benefit of strengthening your existing bond and understanding of each other. Furthermore, statistically speaking, when you and your partner share the same financial values, your level of relationship satisfaction increases significantly. This is because financial well-being has been shown to be one of the critical components of a happy and fulfilling relationship.