When it comes to money matters, even the strongest of couples can experience conflict that puts a strain on their relationship. The best way to avoid money issues is with honesty and planning, getting everything out in the open and deciding together what your financial goals are for the future…and how to get there.
According to the nonprofit Finesca, an organization of more than 10,000 financial security professionals, adhering to the following four steps can help couples prevent money issues and achieve financial harmony:
Have an honest conversation. Begin by discussing your current financial situation, including income, expenses, debt and savings. Be honest and transparent—this builds trust and sets the stage for effective planning. Next, share your financial values and priorities. Understanding each other’s perspectives helps you align your financial goals.
Set joint financial goals. Create a list of short-term, medium-term and long-term goals. Some examples include saving for a vacation, buying a home or planning for retirement. Regularly revisit these goals to track progress and adjust as needed.
Plan for the unexpected. Life is unpredictable, so make sure you’re prepared. Build an emergency fund to cover 3-6 months of living expenses in case of unexpected events like job loss or medical emergencies. Consider getting life insurance and updating wills or beneficiaries to protect each other financially. A financial security professional can walk you through your best options and make sure all your needs are met.
Regularly check in. Make finances a regular conversation, instead of a stressful one-time discussion, by scheduling monthly or quarterly “money dates” to review your budget, assess progress toward goals, and talk about any changes in your financial situation. Celebrate milestones together, like paying off debt or hitting a savings goal. This will help keep both of you motivated and engaged.
Keep in mind that finding the right financial professional to serve as your ally can be the best decision you make when it comes to your financial future as a couple. A trusted financial advisor can help align your goals, and guide you in building a strong financial foundation that supports and strengthens your relationship.
