Money Advice for a More Financially Content Couple

It’s not always simple to manage your finances, especially when you’re just getting started. It becomes even more challenging when you add another person to the mix!

Now is the moment to discuss money, whether you just got married, plan to do so soon, or are just becoming serious. Unromantic, you say? Unfortunately, financial issues are a frequent source of tension in relationships, and if they are not resolved, they may begin to affect more than just your wallet.

Read through to learn tips on how you can strengthen your personal finance and joint savings with your partner!

Start the Conversation by Opening Up About Couple Financial Goals

Early on in your relationship, be open and honest about your financial situation. You should discuss it right away if one of you is having debt problems or has very specific financial objectives. Also, talk about your spending patterns. Are you a risk-taker or money-shy person? A shopper or a saver? It’s not necessary for your financial attitudes to match, but if there are significant disparities, some compromise may be necessary. It’s preferable to discuss these topics now than to wait until later when they can lead to misunderstandings or fights.

Talk about how your respective families managed money when you were kids in your first interactions. Was it never brought up? Did you occasionally cut costs and live on a limited budget? Or was there consistently enough for everyone’s needs? Knowing your upbringing’s experiences and attitudes will help you create a financial strategy that you both feel comfortable with.

The discussion is crucial for both individuals to understand what they are entering. Whether it is mortgages or unsecured credit, do not avoid discussing the specifics of your financial status. This is frequently the most intense test of, “For better or for worse.” Being transparent and honest about one’s financial history can pay off in the long run because it enables the newly merged union to plan together on how to address any challenges from the past and optimize any potential benefits in the future.

Know Each Other’s Worth While Running the Numbers

Couples should be honest with one another, and this includes discussing money matters! Make sure you discuss your financial circumstances early away, including what you own, how much you make, and whether you have any debt. Whatever your beginning points, start by discussing your current financial situation so you can better plan how to improve it together.

Review your financial records, including those for your bank and savings accounts, loans, real estate, and other assets, and talk about your incomes. To calculate your net worth, which is one sign of your financial health, subtract your debt from the value of all your assets, including cash and any other types of investments. As you gather information, refrain from passing judgment and keep in mind that you are a team with individual skills and shortcomings.

Establish a Well-planned Savings Strategy

There is no one method that works for all couples for handling their finances. You must determine the best way to combine finances for your relationship. To avoid worrying about mistakenly spending the final money in a shared account, some couples decide to maintain separate spending accounts. Some couples split the cost of paying bills equally, while others pool their funds and only use them for wants rather than necessities, which helps prevent overspending on wants.

Set Short- and Long-term Priorities

If you don’t know what your goals are or understand what the other person wants, it can be difficult to accomplish them. If you have a strong motivation to save, it will be simpler for you to do so. Want to purchase your first home? A larger location? Create a sizable trip fund? The first step to realizing your dreams is to talk about them.

If you still have money after creating a budget together, you can utilize it to save towards those major objectives. If you do the math and find that your income is less than your anticipated expenses, you’ll probably need to consider how to reduce your spending.
Whenever feasible, prioritize paying down your debt. The interest rate you pay on your outstanding debt obligations will be decreased or eliminated. Additionally, paying off your debt and interest will free up more money in your monthly budget for spending. Heavy debt could harm your credit score, especially if you miss payments.

Check In On Each Other Always

Is achieving your first one million pesos or purchasing your first home and property one of your #couplegoals? Whatever your objectives, keep in mind that treating your partner like a teammate will help you achieve them.
Encourage and support one another in making the best decisions possible, especially financial ones. Remember that you’re on the same team and that you’re cooperating to achieve the best results for the both of you. Try to prevent conflict.

Some things you can do to get started:

• Create a combined bank account to make managing your finances easier, especially for your shared savings and spending.
• Based on your savings objectives and the agreed-upon budget, make a monthly budget.
• Learn how to begin investing in mutual funds in the Philippines

Make Your Couple Financials a Priority!

It is crucial that you communicate with each other, work toward your life objectives, and arrange your finances in accordance with those goals. Planning a life together doesn’t have to be tough or complicated. Start now, start somehow!

About Our Company

Cocolife Asset Management Company, Inc. (CAMCI) is a wholly owned subsidiary of Cocolife. We started operations in 2003 and are licensed to operate as an investment adviser and principal distributor of Mutual Funds including United Fund, Inc., Cocolife Fixed Income Fund, Inc., and Cocolife Dollar Fund Builder, Inc.

Our Funds have received recognition and awards from both International and Local award-giving bodies such as Thomson Reuters Lipper Fund and Philippine Investment Funds Association (PIFA) for our superior returns’ performance over the years.