Being a young couple can be stressful. When are you getting married? Are you going to have a baby? Are you moving into his or her place? How are we ever going to decide on a movie to watch on Netflix?
Sure, it can be tough, but when it come sto finance, here are five great tips from some reliable sources.
1. Track Your Expenses and Budget Your Bills - FamilyShare.org
“I can't stress how important this is. As you spend money, write it down. I sit down at the end of every day and enter all mine and my wife's expenses. I then check to see what bills are due that day on our shared calendar, and check them off.
I've created my own system for doing this using a Google Drive (particularly Google Sheets and Google Calendar) and I've shared it with my wife so she has access to it any time she wants to see where we stand.
If you don't have this kind of time, I recommend using a money management app, such as Mint.”
2. What’s Mine is Mine - CheetSheet.com
“The age of the relationship appears to be a factor in how couples share finances. Information published by Slate asserts that 57 percent of couples who are together less than one year keep their finances apart, compared to only around 20 percent of couples who had been together for eight years. Around one-third of single adults say they would ask their partner to sign a prenuptial agreement, according to statistics published on USA Today.”
3. Purchases - NEA
“Four in 10 coupled Americans feel that their partner spends more money than they do on non-household related purchases, according to American Express, with $275 being the average threshold at which couples feel they should consult with each other before making a purchase.
Each couple must establish a comfort level on buying “stuff.” You also need a sense of what kind of spender your partner is. Early adopters snatch up every latest, greatest product that hits the market. The classic laggards must conduct research while waiting for the hefty debut price tag to head south. The two can enjoy a happy life together if rules are set and followed.”
4. Set Payment Goals - DebtRoundUp.com
“A third factor in debt management for couples is establishing a realistic budget for paying off all debt. Bankruptcy lawyers say it is best to review bills on a regular basis and set short and long term payment goals for credit purchases and any outstanding debt accounts. Couples should have a plan to become debt-free, have reasonable savings and a low debt ratio that results in significant discretionary income each month. By setting goals, couples will find they will need to make a few sacrifices to pay off outstanding debt faster or within a time frame that will save on interest and other costly fees.”
5. Compare Your Values - USA Today
“Not everyone's needs and wants are the same. Your money values show what you want to focus your time, energy and money on, Fick says. Whether you want a big house, vacations or an early retirement affects your financial decisions. Know what is most important to your partner in life so that you can make sure if you are close to being on the same page financially."
As with most all other factors of a relationship, figuring out finances takes time, compromise, and communication. Stick at it and you’ll be better for it.
Contact Steel Valley Investment Group of Raymond James for more options on how to save for your future.
Information contained in this report was received from sources believed to be reliable, but accuracy is not guaranteed. Views expressed are the current opinion of the author and are subject to change without notice.
Links are being provided for information purposes only. Raymond James is not affiliated with and does not endorse, authorize or sponsor any of the listed web sites or their respective sponsors. Raymond James is not responsible for the content of any web site or the collection or use of information regarding any web site's users and/or members.