Being in a relationship and managing expenses as a Couple can be a bit difficult if you do not plan for it properly. As a couple, there are things that you two do together that costs money. Little bit of strategy and planning can help you out in such situations. Here is a list of eight tips that you can incorporate in life as a couple to manage your finances better.
1. Plan For Inexpensive Dates And Outings
While you are still at the dating phase, try and enjoy life together while dating in a way which does not include spending a lot of money. You have to except that most of the time while we are at the dating phase, we are young and just in the initial stages of our career which limits our expenditure also. You can still have a lot of have fun though. Instead of going to costly night clubs, go for long bike rides, a walk in the park in the evening, a matinee show, homemade food, free concerts or just an ice cream date can give you a lot of time and opportunity to interact freely and get to know each other without causing a dent in your pocket.
2. Talk About Shared Expenditures Openly
If taking a decision about moving in with your partner, do take the finances and the arrangements into consideration. Since everything you do together in life is going to cost you money, be very clear about the Financial goals and aspirations of each other so that you two are on the same page. Discuss about aspects such as leases, household expenses, and other expenditures before you decide living together. Be clear about who is going to pay how much and what responsibilities regarding finances one is going to take before you move in to keep the complications out of the relationship.
3. Have A Financial Plan
Once you are a couple and specially when you are living together or married, you need to make a few adjustments in your financial section too, so that everything falls into place properly. Always have a financial plan with your partner so that it can serve you both of the Financial Goals you have set, individually as well as a couple and keep working towards them to achieve them without causing any disharmony in your relationship. Keeping the financial planners can also help in taking tough financial decisions on what is a must and what you can let go off.
4. Save By Combining Savings
Share the burden of the expenses together as well as save your money in a combined way to save more. Cost on things or aspects such as home purchases, food and accessories needed for the household should be shared. If you two combine your savings, you can easily opt for lower fees in banks and get a better take on loans as well as its payment. Keeping an eye on the difference between the personal loan fee and the combined ones can also lead to major savings as a couple. Take advantage of the opportunities that you get as a couple from the state and utilize it for your better and secure future together.
5 Build A Simple Budget Together
During the initial day’s just keep a track of the monthly expenditures for a month or two and keep a track of the expenditure each day to get a good idea about the entire scenario of the finances. For ease you can even use spread sheets and online tools to keep up with the correct calculations and estimate. At the end of the month add up everything to understand what the essentials are and what are the categories of expenses that you can strike out to do some savings too. After that, discuss with your partner and come to an agreement to carve out a realistic budget that you two can actually follow and then stick to it without fail.
6 Utilize The Envelope System
In the olden days, when people used to get their paychecks, they used to cash the entire amount and would use the envelope method to keep the expenses on track. You can still do the same and have a sound financial plan every month. When the salary is credited to your account, you can cash it out and divide it into envelopes labelled as house rent, telephone, electricity, groceries and food, etc. and also an envelope for miscellaneous expenses. Rest of the money you can again deposit in your account. Quickly do away with your monthly financial obligations such as rents and EMIs so that you can feel relaxed and enjoy freely. Try to save at least thirty percent of your earnings in liquid savings apart from your other insurance plans.
7. Divide the Financial Duties
Have a talk with your partner on what you two like to do, who is the spender and who is the saver in the relationship before going ahead with any plan. Once you have sorted that out, divide the financial responsibilities in a way that no one is burdened too much in the partnership. Divide the duties keeping in mind these aspects and make sure you both are comfortable with the duties and have not just accepted it as you two will have to maintain this every month.
8. Get Three Accounts: Mine, Yours and Ours
When living together as a couple, you need to strike a balance, both at the individual level and at the level of being a couple. Try to maintain three accounts, where you can save individually as well as a couple. The joint account can deal with the financial goals that you two have taken up together such as purchasing an apartment or a new car and you can save nicely in the individual accounts too.
With a little tact, proper communication and a bit of planning in advance, you two can totally nail the issue of financial management as a couple and avoid critical situations such as a financial crisis causing complications and bitterness in your relationship. For advice or suggestions, please write to us or comment below.SHARE THIS STORY ON FACEBOOK
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