LAST month, we celebrated Valentine’s Day with most of us eating outside, buying stuff like chocolates and flowers to surprise our love ones. But to most of us, it has been a challenging day because we went over budget just to impress the one that we are pursuing or maybe our spouse? Having conversations about how you should manage your finances together is vital for things to work better.
Sharing some finance principles that we can apply with our spouse, or love ones.
1. Start early. Most couples don’t want to talk about money in their relationship. It’s a taboo because our partner might misinterpret us that we are too concerned about finances. Early on, we can open up this to our special someone because it will help both of you to have team work in achieving our life or financial goals. Just be open, talk about your income, expenses and even aspirations.
2. Seek help. There are instances when you will encounter financial challenges because of life circumstances, do not be afraid to reach out to a trusted family member or friend who can help you in navigating your financial life. Being accountable with someone can help both of you in thriving in your finances.
3. Create a spending plan. Budgeting together will help your household plan out your priorities. If you are starting your family, it is important to establish your monthly income and expenses to avoid overspending. This can help your family to avoid bad debts in the future especially when you have kids already. If both of you are working, you may agree with certain bills assignment. For example, the husband will take charge of amortization, rent and major expenses while the spouse may pay the utilities and focus on setting investments. It really depends on the earning capacity and agreement.
4. Acknowledge your differences. As much as possible, do not allow finances to be a battleground. It should be a place of team work. But in reality, there will be differences in perspective because you and your spouse have different backgrounds. In this way, focus on collaboration and not competition with one another.
5. Maintain a lifestyle lower than your household income. Getting married is fun and fulfilling. It is a season for you and your spouse to build your dreams together and bless people. On the other hand it can be daunting if the expenses are not monitored early on. A big income should not necessarily equate to a luxurious lifestyle. Of course we want to live a comfortable life but as much as possible we need to be wise as well. You may agree together for a lifestyle that you are both comfortable wherein there will be no compromise in money management. As income and responsibilities increases, we will need additional cash flow but then that should not equate to excessive spending that can result to debts.
6. Set investment goals. Once a healthy financial foundation is in place, setting investment goals together will allow both of you to stay motivated. Building a business or working in a corporate job will become tiring at times but if you have short-term and long-term goals in place, both of you will be motivated to prepare for the future. Knowing the investment platforms available in the market will help you and your spouse in setting aside a portion of your income consistently.
Each couple’s journey is unique. We cannot compare it with others, this is the reason why we should also appreciate the blessings that we have. Start small, enjoy every moment. After all it is more fun to build your dreams with someone. You may not achieve all your goals in an instance, but still be grateful with small things. If you and your spouse are faithful with small, there will be greater opportunities to be entrusted. Know your “why,” this will help your family in becoming motivated despite of the hurdles that may come along. Prioritize also your time together more than your financial goals. This will help both of you to be in one page in your lifelong journey.
Karlo Biglang-Awa is a registered financial planner of RFP Philippines. E-mail: info@rfp.ph or text at 0917-6248110.