Money & Relationships: 5 Tips Every Couple Need To Know About Finanical Planning
Nov 23, 2022
I know it's Valentine's Day! For some this is an exciting time to show an extra amount of love toward your partner or significant others.
For others, it can be a time you reflect on your love relationship and feel a little down watching everyone get showered with gifts and flowers.
Valentine's Day is a great moment to sit back and learn more about money & relationships.
Especially if you are committed or married, it doesn't matter, because having a solid understanding of finances is essential for every stage of any relationship.
Being transparent and setting financial goals are something you should always keep in mind especially when you are in a relationship.
During courtship you start discussing money and how you both properly manage money.
After marriage there are several adjustments from merging two individual lives, children, and of course money.
Here are 5 tips that I believe every couple needs to know about financial planning.
#1 Tip: Create a Budget
Rather you are married or planning to get married, this is the first step. Very simple yet it can take you weeks to get started. It's important because you should get in the habit of training your mind to know exactly how your money is spent and where it goes. No matter how much time it takes, sit with your partner and create a budget.
The Career Mompreneur can help, we can easily create and set a monthly budget of your current income and expenses and then the financial planner creates a new monthly budget for you to achieve your financial goals.
A proper budget needs to be a formally documented (written or typed out), fully or semi automated itemization of your income, expenses, and savings. If it doesn't meet the above it is not a good budget to plan for your future.
#2 Tip: Set Financial Goals
How can you make your budget without being unaware of your goals? Yes you can't.
It's important to identify what are your financial goals, timing you want to accomplish, and build a new monthly budget factoring in how to accomplish each goal.
You must establish SMART (Specific, Measurable, Attainable, Relevant, and Time-based) goals.
What are SMART goals? Let's dive in.
Specific: Make your goals specific and narrow for more effective planning.
Measurable: Define what evidence will prove you're making progress and reevaluate when necessary.
Attainable: Make sure you can reasonably accomplish your goal within a certain timeframe.
Relevant: Your goals should align with your values and long-term objectives
Time-Based: Set a realistic ambitious end-date for task prioritization and motivation
For couples, it's important to take account of your monthly income. Understand your expenses as it will help to know where your money is going and what is coming in to put towards your short, medium, and long-term financial goals.
#3 Tip :Savings
After accounting for all your monthly expenses, you can now evaluate your savings. Didn't think of it? No worries….. discuss now.
As a financial coach, I teach my clients how to build a strong savings net. Having a solid financial foundation allows you to achieve your long-term goals...you can check some below.
investing
college planning
buying a home
investing into real estate.
It takes a positive cash flow to achieve your financial goals, and savings is where we get the positive cash flow. Yeahhh!✨
#4 Tip: Emergency Fund & Health Insurance
Almost in every blog… I have stressed enough about the Emergency Fund. That's only because it's extremely important.
This COVID pandemic was a wide awakening that having a solid emergency funds account and health insurance was critical for families.
Health care costs are a contributing factor for individuals slipping below the poverty line. In addition, there is a lack of emergency funds that can help fill the gap in the event of job loss, pandemic or anything that just happens in life that we can't avoid.
Do you have a solid emergency fund saved up?
If not, check out The Career Mompreneur Gold Membership and subscribe to start 1:1 monthly financial coaching to understand how to get your finances on track.
If yes, The Career Mompreneur can help you create a winning budget that truly aligns to your financial goals. A rule of thumb is to have at least 3 months of your current living expenses saved in your bank account that can temporarily help you through financial challenges.
If you found these tips helpful and would like to learn more about how to make money & relationships work for you, please SUBSCRIBE to THE CAREER MOMPRENEUR. We would love to help you out✨
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