Show your finances some love this valentine’s. Financial compatibility is important in a relationship; however, it is often put aside. Money not just affects your well-being, but it can also be the cause of stress in your relationships. Here at BDCU Money Tips, we are going to focus on ways to help strengthen financial compatibility.
What Is Financial Compatibility And Why Is It Important?
Financial compatibility is about respecting one another and understanding each other’s values, habits, and behaviours. It doesn’t mean you have to make the same amount of income, or it is necessary to have the same practices surrounding money.
It is normal for couples to feel tension arising from disagreeing with their partners spending or saving habits and their financial approaches. Therefore, it is important for you to discuss your financial values to prevent financial decisions from straining your relationships.
Show Your Finances Some Love
Ways To Improve Your Financial Compatibility:
Communication – Let’s talk
Being honest and communicating openly can be difficult for some when it comes to their finances. Communication not only helps you to understand what leads your partner to make their financial decisions but also gives you a chance to empathise with each other. To prepare for your future financial responsibilities together, you must be transparent about any good or bad debt you have. If you have a low credit score, it is good to discuss with your partner before making any huge purchases together and you can discuss how you can improve your score.
To go a step further, you can create a checklist about your financial goals and values such as maybe traveling the world, being debt free, or buying a car. A checklist can prevent your conversations from going off track and be a guide.
Do you feel like your partner spends too much on unnecessary things? or, they don’t contribute enough to household bills? Talk about it. Just be respectful and sensitive in your approach.
Make a Plan (how much u save n spend) – Let’s Save
Plan and see what works for you. Some couples prefer to have separate spending accounts to avoid the worry of spending others’ money. Whereas some couples prefer a joint bill account which they can both contribute to accordingly.
You can create a joint budget to work together on and see how you can split any bills and save. Firstly, start by calculating the income you both make after taxes. Then in another column, add all your expenses such as debt, car payments, household and utility bills, savings, grocery runs, and any other expenses you make for your daily activities. Subtract your monthly expenses from your monthly income and take it from there.
Compromise – from time to time
Make sure you both are aware of each other’s future goals and keep track of your money, in this way you both are prepared to take on the financial responsibilities and compromise without potential arguments arising.
Show your finances some love and Start Saving! We help encourage our members to get into savings habits in a way that is suitable for them. Whether that’s through payroll deduction, regular savings, or saving as you borrow. Why not read our money tips and sign up for more.