Not really sure how to manage money as a new couple? It can be tricky, but Laura gives solid advice for how to know what's right for your situation. Use these six tips to avoid potential disagreements and create a great financial life together.
Alyssa says, “My boyfriend and I have been living together for 2 years and still can’t figure out the best way to manage money as a couple. We’re serious and think about our finances as one pot of money; however, one of us makes more than the other. Should we split everything 50/50 or by how much we make? And what’s the best way to handle credit cards and bank accounts?”
No matter if you’re in a serious relationship, like Alyssa, or have already tied the knot, managing money as a new couple can be tricky. Everyone’s situation and preferences are different, so there isn’t a one-size-fits-all system.
However, there are critical do's and don’ts that will help you avoid potential disagreements and create a great financial life. Keep reading for six money management tips that every new couple should follow.
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Tip #1: Know Where Your Relationship Stands
Since every relationship is different, my first tip is to be realistic about the status of yours. If you’re close to getting married, or are 100% committed and feel certain that your union will stand the test of time, my advice for managing money as a couple is very different than if you’re really not sure if you have a solid future.
If you’re a committed couple, then your money should follow. Leap in and merge every aspect of your finances!
Uniting money with joint accounts is the best way to work and succeed as a team. Steer your future as a couple by deciding how to budget, how much to save, whether to buy a home, and so on.
When you’re in a committed relationship all financial decisions should be discussed and shared equally—otherwise you’re just living two separate lives under one roof. It doesn’t matter if only one person works, one earns much more than the other, or one brings more debt into the relationship. Love doesn’t keep score when it comes to money.