They say that teamwork makes the dream work. But finances can get in the way. According to a study by Debt.com, 42% of divorced couples cite finances as the leading cause for the end of their relationships. Thankfully, the Harvard Study of Adult Development recently found that working together may be the key to long-term, financially healthy relationships. Here are 5 ways to keep the love and money alive in your life.
- Manage Money as a Team: Regardless of who brought what debt and savings into the relationship, experts suggest managing those finances as a team. By focusing on your savings and debt together rather than individually, you can help your savings grow. You could also pay off debt more quickly.
- Set a No-Questions-Asked Spending Limit: Agree on a dollar amount that each of you can spend per month or per week without consulting the other person. If the amount one person wants to spend exceeds that limit, an agreement must be reached to make the purchase.
- Have a Monthly Finance Date: Finances can be fun for couples. Every month, set aside an hour or more to review the budget, talk about upcoming expenses, look at your savings, dream about retirement, and celebrate your financial successes.
- Set an Emergency Fund Target: An emergency savings account should have enough in it to cover three to six months of your household expenses. It’s there to keep your family afloat if someone loses their job or life simply gets in the way. As a couple, decide if three, four, five, or six months of savings is needed. Also, decide if the emergency fund should cover everything, including entertainment, or just the basics such as food, shelter, and transportation.
- Be 100% Honest: Do not hide purchases or debt (such as credit cards) from your significant other. Undisclosed debt and money can cause relationship issues. Instead, share every part of your financial lives together. That includes your past debt indiscretions and savings success stories.
Boost Your Financial Wellness
More Financial Wellness Matters blogs on topics ranging from financial self-care to protecting your financial health are coming soon. Twice a month, we’ll dig a bit deeper into the relationship between financial health and overall well-being, shedding light on the behaviors and beliefs that drive money relationships. With simple tips and proven insights, we hope to enhance your financial well-being and help you live a healthier, happier life.