All's fair in love and money
Moving in with your partner? That's a big step. Let's be honest: learning to co-exist can be hard.
Either things go well and it's a stepping-stone for bigger things, or it allows you to see all those annoying little things that you never noticed until you actually lived with them, which all add up and can spell the end of the relationship.
A person's spending habits is often one of those little things that often has not-so-little consequences. Everybody has different spending habits that either do or don't suit their lifestyle. When it comes to making things run smoothly when a couple's finances merge, it is important to identify these habits in order to keep things running smoothly.
Whether you are an average earner that plays it safe by putting your savings into a bank account you've had since you were five, or you're a high roller who's willing to take a few risks in order to make a profit, these characteristics will have a considerable effect on your relationship.
It requires a lot of trust to let someone else have access to your cash. There are no set of rules that works for absolutely everyone so when it comes to that inevitable 'finance discussion' between you and your partner it's easier to just get down to the nitty gritty early on. It'll save you both time and money.
Figure out what it is that you both value spending your cash on and saving for. Then you can start making important financial decisions that you both agree on. While it is important to respect the wishes of both parties, it's not always easy. This is where the two 'C' words come into play - communication and compromise.
Regardless of what each person earns or their spending habits, you must both be involved in the finances. Some people say that communication and compromise are the key factors in a healthy relationship, and with money it's no different. If you both stay up to date with your entire situation, future cash decisions will be much easier.
These days it is more and more common to have a 'mine, yours, and ours' approach to your money. This can make things easier when it comes to paying household bills and expenses. By paying bills from a joint account into which you both make equal payments every time you get paid, you are able to keep things fair while hanging on to some financial independence in the form of separate bank accounts for personal expenses.
Next on the financial agenda is debt. Think about what debts you have that need to be paid back. These could be anything from a tab at the corner store to a $30 000 student loan. Incorporate these payments into your monthly budget. When signing up for any new loans such as a mortgage or joint credit card where both names are put on the bill it is important to remember that you are both responsible for the whole debt, not just your share.
Some debts have consistent and regular payment amounts so make things a little bit easier for yourselves and set up an automatic payment from your expenses account. If you don't see the money in the first place you wont miss it, and you wont have any late payment fees to worry about either. Another handy hint is to keep your personal credit card. That way you can make those purchases on things like gifts without your partner knowing how much you spent on them!
Once you have figured out where you and your partner stand financially, you can start to plan for whatever dreams lie ahead as a couple. Many people will attempt discussions regarding money and then put them in the 'too-hard' basket. Just remember that sorting out all those little details can mean the beginning of a healthy and enjoyable life together, so look into all the financial drawbacks and opportunities available to you.
