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Saturday, March 2, 2024

Navigating finances as a couple –

Navigating Finances as a Couple is a crucial and often complex aspect of any romantic relationship. It involves managing financial matters collaboratively and making joint decisions about money matters.

Romantic relationships are not just exciting emotional adventures, they also have financial cost implications, for example, there are bills to pay, expenses to make, investments, and projects to undertake.

The challenge for most couples is how to create a balance between their financial goals and meeting the financial demands of their romantic relationships and lifestyles. There are several options that a couple can consider in their effort to create a balance between financial prudence and their romantic lifestyles.

1. Open Communication:

Discuss Financial Goals: Have open and honest conversations about short-term and long-term financial goals. Understand each other’s priorities and expectations. Both parties must be aligned in terms of their financial expectations of each other.

A couple must agree on the financial goals of the relationship for example they might agree to save or pool resources together to rent an apartment get married or undertake a project together. If already married, then they might want to plan for their future especially retirement and financial security. These goals are likely to influence the couple’s lifestyles and choices with regard to their spending patterns and savings culture.

2. Joint Budgeting:

Create a Budget Together: Develop a budget that reflects both partners’ incomes, expenses, and savings goals. This helps to enhance financial transparency and shared responsibility. This is important partly because of the changing economic dynamics among couples and the increasing contribution of women to the financial well-being of the relationship.

The budgeting process provides an opportunity for the couple to efficiently allocate resources. It also helps the couple to understand the financial needs and expectations of each other. Relationships require collaboration and cooperation between couples to be able to achieve a certain level of desired standard of living and to create a better future.

3. Financial Roles and Responsibilities:

Define Roles: Clarify who will be responsible for specific financial tasks, such as bill payments, investments, or budget tracking. Establishing roles can prevent misunderstandings.

For example, a couple must agree on whose responsibility it is to pay certain bills, what proportion of the bills will be taken up by each party, and how the couple intends to finance their lifestyles and cost-of-living expenses.

The couple must come to a clear understanding of each other financial roles and responsibilities to avoid conflicts and disagreements in the future. Fortunately, we are increasingly seeing the willingness of most couples especially women to contribute and share the financial burden of relationships.

This should therefore make it possible for more couples to save and achieve more of their financial goals.

4. Emergency Fund and Insurance:

Build an Emergency Fund: Save for unexpected expenses to provide financial security. A couple needs to save or set aside funds for a rainy day. There is the temptation for couples in romantic relationships to throw caution to the wind and live just for the moment.

A careful examination of such a couple of expenses will show that it is dominated by frivolous expenses and ostentatious lifestyles which leaves very little to save, talk less of saving for emergencies.

Insurance Coverage: Insurances are intended to protect against possible eventualities in life. There are various insurance options available to most couples. These include Life, Term life, Health, and Auto insurance to mention but a few. While no one can fault couples in a romantic relationship for living in the present and basking in the glow of love, one must remember that eventualities are part of life, can happen to anyone, and must be planned for.

5. Debt Management:

In earlier noted points, we made mention of the need for couples to be transparent in their dealings with each other. I would like to extend this to include discussions of a couple of existing debts.

Such debts if not properly managed and their terms of repayments properly structured, could create an unnecessary burden on the couple’s finances and negatively affect their lifestyle and romantic adventures. It could in some cases lead to a deterioration of the relationship leading to the eventual breakup and with the non-fulfilment of the couple’s relationship and marital dreams and aspirations.

6. Individual and Joint Accounts:

Balance Independence and Togetherness: Decide on the appropriate mix of individual and joint accounts based on your comfort levels. Some couples prefer having both personal autonomy and shared financial goals.

Whatever your preferences might be, please discuss it together and come to an agreement that allows you to manage the expenses of the home or relationship while making provision to financially demonstrate your love to each other, especially during this love season.

7. Financial Planning for the Future:

Retirement Planning: Discuss and plan for retirement together, considering factors like lifestyle expectations and savings strategies. During this season of love, it is understandable that couples will be swept away in the euphoria of romance and love.

But life is not all about the present but it’s also about the future, so couples must make a deliberate effort to put aside funds, sufficient to take care of their needs in the medium to long term.

Investment Strategies: Determine joint investment strategies and risk tolerance for shared financial growth. You have heard of the saying that invest in your youthful days and let your money work for you during your retirement.

That advice still holds despite recent uncertainties and developments in the economy. My dear couples, ensure not to take unreasonable risks but let your investment decisions be driven by sound investment principles and not greed.

8. Navigating Differences:

Money Personalities: Recognize that individuals may have different attitudes toward money. Find compromises and solutions that accommodate both partners’ perspectives.

Handling Conflicts: Establish healthy communication patterns for resolving financial disagreements and conflicts.

9. Regular Financial Check-Ins:

Scheduled Reviews: Set aside time periodically to review financial goals, assess progress, and make adjustments as needed.

Celebrate Achievements: Acknowledge and celebrate financial milestones and achievements together.

10. Long-Term Planning:

Estate Planning: Consider creating or updating wills, especially if you have joint assets. Discuss preferences for inheritance and end-of-life decisions. For an orderly transition and avoidance of confusion and chaos when you are no more, please make sure you write a will documenting in clear terms your last and final wishes.

The making of wills is not the preserve of old men and women, young couples can and should also put down their wills.

Financial Legacy: Plan how you want to leave a financial legacy for future generations. Ensure you have documented your properties and registered titles to landed properties. That said, the best financial legacy one can leave for their children is to raise them in the fear of God, give them good training, and equip them with the right skills and tools to make them relevant in the years when you are gone.

12. Seek Professional Advice:

Financial Advisor: In complex financial situations, seeking the guidance of a financial advisor can provide expert insights and help create a tailored financial plan.

Conclusion

So, my friends by all means let’s enjoy and make the most of the love season but while at it let us be reminded of the significance of our financial well-being. Like the good book says, there is a time and a season for everything under the sun. Eventually, when the dust settles and the feeling of ecstasy and euphoria of love is over, there will be bills to be paid.

Remember “I love you; I love you, does not pay bills, neither does it put food on the table”. We must therefore find a balance between celebrating love, and romance and making the right financial decisions in our relationships and marriages.

Source: Stanbic Bank

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