Whatever be the stage of relationship you are in, money is one variable that will always be present, and is one of the major reasons why couples fight.

As if managing your own finances wasn’t difficult enough, bringing in another person into the equation can be a further step difficult. The money factor also plays a very crucial role in maintaining a healthy relationship between couples. It can also be blamed for many failed relationships. But managing money as a couple has several benefits, and it might not be as difficult as we think they are. A harmonious approach to saving, spending and investing is the key to creating a strong relationship. Plus it’s never too early/or too late to improve the way you and your spouse manage your financial relationship.

Managing your financial well-being is not that different than managing your physical well-being. And no you do not have to be a number whizz and no it doesn’t take a lot of your time. Instead you come out better understanding the waters you float upon, and the stress is always reduced.

As is said, two brains are better than one, a lot of couples begin to find financial success once they set off to tackle budgeting and money management. Here are a few ways to take your relationship goals to that next level and to become a couple lying on a financially sound backdrop.

Communication comes first

We come from a society where we label confrontations and conversations that create conflicts as bad, and tend to avoid them. This even touches upon our everyday lives, which is not a very healthy habit. So first things first; you and your spouse need to talk on how to go about it. From paying bills and utilities, to loans and retirement plans, you and your spouse need to be on the same page regarding everything. It’s not necessary to decide all of this immediately, but is rather a process, that must be developed into a habit.

Don’t just talk about numbers, as in how much money comes in, and how to separate the bills and all. But also talk about your combined aspirations for long term, such as those for your new home, car, holidays, children, the type of lifestyle you want to live, and determine the kind of budgeting and saving levels necessary.

Like running a business

Begin treating and running your relationship like a business. Relationships and businesses are set upon similar foundations, and aren’t all that different. You need to constantly track your income and expenses, set short-term, mid-term and long-term goals, keep constant tabs on your cash flow, the money going in and out of your accounts, so you can see if you’re falling short, and how you can make changes so you can meet your long-term goals.

The key to a long term sustainable financial health is to stop living month to month, making money and paying bills, but to have a clear long term destination and action plans to attain them. It goes without saying, that these goals that you set must be measurable and achievable.  But, like in any business, the road to success isn’t always straight. So, you need to plan for missteps and allow yourself room to learn.

The key to a long term sustainable financial health is to stop living month to month, making money and paying bills, but to have a clear long term destination and action plans to attain them

Invest and Diversify

Another very important factor to achieve financial success as a couple is to begin investing your savings. While hoarding and piling up of cash might make you feel secure, beyond a certain point, it becomes a limitation in itself. Successful couples keep a modest emergency fund, but they make the rest of their money work for them long term.

Decide where your joint savings are to be invested. Plus remember the basic rule of never keeping all your eggs in one basket. So diversify your investments into different sectors. Decide jointly the kind of investment opportunities you seek and the sort of risk you wish to jointly assume, because each investment option has its own characteristics. Take up the one you have more knowledge in or are more acquainted with.

Budget Together

Whether you’re a couple living together or separately from the parents, or whether you live in a nuclear family or joint, having a solid budget is another cornerstone to financial success, not just as a couple, but as a family, since we are always closely associated with them whether it’s finance or household matters. But even simply as a couple, the expenses and outflow of cash must be understood by each other. Prioritize your expenses, and decide how to tackle deficiencies. The very beneficial idea would be to have a written budget before each month which both people agree to.

Sit down with your partner, and come up with a budget that works for your relationship. And, meet regularly with your significant other to discuss and amend your budget as needed. Discuss your budgets even for festivities, excursions, recreations, and acquaint other members of the family with the same.

Yours, Mine and Ours

One very successful strategy is developing “Yours, Mine, Ours” accounts. You can maintain personal accounts for making personal expenses, and a joint account which acts as the seed account that funds these personal accounts. Every month you plan and allot amounts to your personal accounts that come out from the joint account. This helps you budget better, become frugal when need be, and keep a continuous track of your financial health on a regular basis. It creates a holistic budgetary path that keeps you up to date on your account, your spouse’s account, and your overall joint account. With all the new services financial institutions are providing such as smartphone banking applications, telephone banking, automated transfers, managing your accounts in the way are proposing is not as difficult and time consuming as you might think.

 

Every month, plan and allot amounts to your personal accounts that come out from the joint account. This helps you budget better, become frugal when need be, and keep a continuous track of your financial health

 

Money date nights

Financially successful couple also regularly set out for money dates to check in on their status. One of the main reasons why money misunderstanding is bred in relationships is because couples leave the finances too open-ended and too open for debate. So serious conversations to systematize the budget, cut ambiguity is the way to go. Making them the primary agenda for your dates fosters more communication regarding money matters. Further, since we mostly live together with our parents and other family, we usually cannot make isolated decisions. Their finances and aspirations also nudge into the equation. So occasionally, date nights might also turn out to become nice family dinners, which is also very good and necessary.