Tips To Avoid Money Fights With Your Partner

2024 Author: Steven Freeman | [email protected]. Last modified: 2023-12-17 08:15

The numbers don't lie: About 2 million marriages take place each year in the United States. In that same cycle 800,000 divorces or wedding annulments occur. This is indicated by the National Center for Health Statistics (NCHS).

And according to experts, one of the factors that most influences these separations is money. Issues like paying taxes, buying a home, or borrowing can ruin even the strongest relationship.

To avoid falling into these traps, the certified financial planner Elaine King shares with you her infallible methods to maintain solid finances with your partner. And if you want to meet her in person, don't miss Powerful LIVE! next March 14 in Miami. It is a free event and to attend you just have to register. Enter this link for more information.

Check out their tips

Make sure you are clear about your goals

The common denominator of couples going through a separation is the lack of a plan. They forgot to chase the dreams they set when they were younger. In a relationship it is important to share and stay together, but it is just as important to maintain your identity. After all, that's why his partner fell in love at first. Be careful not to become someone else or set aside your goals. For example, if you dreamed of starting a business to sell your paintings, make a plan, short or long, and tell your partner. If it was about creating a social impact organization, write it down and set clear goals for yourself. Each goal must have the components of a smart goal, be specific, measurable, achievable, realistic, and have a specific time period. Choose an online way to keep it in mind all the time. Perhaps they could put their goals together and create a game with their partner to see which of them meets them first and reward themselves for achieving their individual goals.

Implement the same strategy with your finances, if you need to start your business, open an account in your name and save, do not mix the money for other purposes. Before opening a joint account, understand the implications, expectations, and differences between combining a checking account and a credit card.

Devise joint goals

According to the American Psychological Association, in 2014 72% of Americans reported feeling stressed about money sometime last month. Depending on someone else taking over finances can be overwhelming, so there must be a division of duties and responsibility for the upkeep of your home. Most couples feel overwhelmed when only one person is in charge of finances. Before dealing with the numbers, you and your partner must agree on the purpose of putting your money together. For example, if Anita's work is on a commission basis and Julio's is based on a salary, Anita could handle non-recurring payments like insurance or taxes, while Julio, who receives a fixed salary,Could take care of recurring monthly bills.

Before doing so, they will need a budget listing all the expenses they will have to keep their new home together. After preparing the food list, invoices, subscriptions, etc., divide it into fixed and variable expenses. Consider adding savings for specific goals, travel, and retirement as a fixed expense.

Assign roles and responsibilities to your financial well-being

Do you both have to deposit your wages in a single account? Should they divide the invoices and pay them directly? Should they keep all their savings in their name? It depends. Typically, you create a budget for the house and contribute to it based on the percentage of your salary, if Anita earns a plant, it needs to be watered very often, watering it a lot a day does not guarantee that she will survive a month without water. Taking care of all aspects of your relationship will increase your chances of staying together. In addition to worrying about your budget and bills, you should also have a statement of investment rules for your active investment accounts, a risk management policy for your life, home, health and an updated will, a power of attorney, and a health care directive. Once you have taken care of all this annually, you will be able to focus on your love life.

All of these suggestions may seem overwhelming, but with clear actions you and your partner can have a realistic financial plan. A certified financial planner can also help you make sure you are choosing the right tools and providers for your plan or taking a course in family finance.

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