Are You Financially Compatible?
“Money can’t buy love, but it improves your bargaining position”
You are in love. You cannot believe how many things you have in common. You have found your soulmate! However, did you find your financial soulmate? In the U.S., one of the top three reasons couples split is due to financial incompatibility.
A recent survey made by CNBC also said that a lot of couples are not on the same page when it comes to money and they also hide things from each other. I know that money cannot buy happiness, but it can influence happiness. Positive cash flow helps couples stay together longer and the opposite causes divorce.
Not dealing with the root of the financial problems just creates financial restraint and sorrow within your relationship, which is the number one reason for fights within the household. It is especially true when you discover that you have different points of view on how to spend the money.
What can we do in order to become financially compatible, avoid conflict and have a long-lasting relationship? Here are four steps that will transform your life:
STEP ONE: Open Communication
You both have to be open about your outlook about money and how it should be spent, without judgment or blame. After all, love conquers all; right? But it takes more than love to talk about money.
Talk about who is more financially responsible between the couple. Next, talk about your points of view about money. If you don't talk openly, the problem is going to exacerbate. It doesn't mean that you will never disagree again, but by being open you will get closer to each other.
STEP TWO: Hold Each Other Accountable
You are your best ally and supporter. Once a quarter have a talk in front of a Financial Advisor or a Money Coach. This will give you no other option but to stay open about finances and future goals. Make it fun. Besides having a date night, why not have a financial check up night, too?
Do not rely on only one person to handle the finances. This is a job for both individuals in the relationship.
STEP THREE: Agree On An Amount
Sit down together to agree on an amount you will spend each week and on what it will be spent. This will help balance the spender in the household.
Couples who agree on spending limits and having a budget will have a longer-lasting relationship than couples who cannot agree. Just make sure to talk about it and be on the same page.
STEP FOUR: Ours, Yours and Mine
It is very important to understand this concept. It is not my money anymore; it is our money.
As couples, you should consult with each other about big purchases. It doesn't mean that you have to consult every time you want to buy a little thing. Agree with each other on the dollar amount that you need to consult so there is no misunderstanding.
In the end, you are both in the same boat. If you want to avoid a sinking ship, make sure that you understand that money can polarize the relationship. It can build it or destroy it; you choose.
Sara Chevere is the Creator and Founder of The Financially Fit Women. She helps women, couples, and entrepreneurs to become financially fit by teaching them about money. Sara has been in the Finance and Mortgage Industry for over 17 years. She loves to talk about money, and her mission is to educate and empower you to have the confidence to achieve financial freedom.
"Financial Education is The Path to Freedom" - Sara Chevere