Disagreement
about money are
often the main reason that married couples split up. In this issue, we will be highlighting some basic rules to follow to ensure a happy (and wealthy) life together.
Get It Out In The Open:
The key to any relationship is communication and when comes to your finances, it’s absolutely vital. Talk to your partner about how you would like to deal with money matters. How much do each of you earn after tax and how much are you spending? Who’s paying the house bills, when are they paying them and what account are they coming out Check whether you’ve still got bills to come from your wedding reception or your honeymoon if YOU just got married and make sure you have got money allocated to pay them when they arrive.
Separate or Joint Accounts:
Decide whether you want a separate or joint accounts or try both. One way to deal with regular bills is to set up a joint account specifically for paying them. This arrangement means you can still I both keep your own separate accounts — increasingly important for people who value their financial independence. Each of you pays an agreed amount into the joint account every month. Most of the bills to be paid from this account can be settled by direct debit. Make sure you monitor that the account always has enough money coming in to cover all your expected expenditure and that the right amounts are being debited every month.
Also make sure you agree which bills are to be paid from the account. Regular utility bills, food, household items, etc. are the obvious ones. But are you going to use joint account to pay for friends’ birthday presents from this account? Wedding presents for family members? Treats from one partner to the other? Whatever you do, make sure you agree and then stick to your plan.
Who’s Responsible? Both of You:
Don’t leave the boring paper work to one partner It takes only a few minutes to ensure you are familiar with all the money coming in and the money going out. You should both know how much you are paying each month for rent or mortgage, for insurance (for those who believe in insurance) and on general bills.
This helps to avoid misunderstanding, disagreements and mistrust.
Keep Business Strictly Business:
If one or both of you is running a business, make sure you have agreed on how business expenditure and liabilities are to be dealt with. You don’t want a nasty surprise the next time you check your joint account balance!
Plan Your Future:
Once you have got your day-to- day living sorted out you will need to consider your future. What savings and investments do you have
now and what will you need in the next five, ten or fifteen years? Talk through what you want to achieve with the cash you stashed away —
are you saving to build or buy a bigger house? Are you investing to pay for children’s school fees, for example? Then work retirement? Remember
that the earlier you start saving for old age, the richer you will be when you reach it. Lastly, do not forget to make a will.
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