Do you talk to your significant other about money? About how you spend or save? Does the subject of money management only come up when the bills are due or is it a constant sore spot in your relationship?
Why is it so hard to talk about money?
Talking about money shouldn’t be stressful, but it often is and that’s why it’s a subject many couples avoid. There are many good reasons to talk about money; it can be an opportunity to create a plan that will help develop your mutual goals and dreams for the future. The best way to manage money is to look at your financial situation and your future goals honestly, and that is where all couples should begin. Without judgment or resentment, take an honest look at your finances and begin, together, to work out your plan for a future of financial freedom.
Here’s how to start:
Create a Spending & Savings Plan
Creating a Spending and Saving Plan is both more flexible and effective than creating a traditional budget, and is a critical step toward achieving your goals. Here is what you need to do:
- Write down every single expenditure for the next thirty days. Well before the thirty days are up you will know the truth about where your money is going.
- Do all spending on a debit card (or credit card if you’re positive you will pay it off fully each month) wherever possible to make it easy to track your spending.
- Use the worksheets and tools from Money Smart to create a detailed Spending and Saving Plan based on your personal goals.
- Once a month, compare what you actually spent with your plan. Learn from what happened and adjust both your plan and your habits accordingly.
The huge advantage to creating a savings and spending plan is that you will understand exactly how you are actually spending your money and then can decide what improvements, if any, you wish to make going forward. It’s quite empowering when you take charge.
Get Out of Debt
If you have debt, the question you both must answer is: Are you both willing to make the commitment needed to eliminate debt? Are you ready to make the sacrifices required? Until you are, your debt is not going to go away. If you are ready, the first step is to adopt the right attitude. When you both agree about the importance of reducing debt as methodically and quickly as possible, and create an action plan that you both can stick too, you can begin chipping away at your debt and eliminating a source of stress from the relationship at the same time.
Talk to your partner about money. Money doesn’t have to create stress in a relationship. Quite the opposite, it can be a way to connect with your partner through the mutual support of both your shared and individual dreams. This process can bring you closer and the end result is financial freedom to enjoy together.