Money has the power to sour relationships; it’s one of the leading reasons for divorces. So it’s important to test your compatibility in money matters.
Bringing out a budget spreadsheet during a romantic dinner can be morbid, so keep your dinner date light and rosy. To talk about money things, set aside some time, wherein the focus is going to be your finances. Talking about money is essential to strengthening your relationship, as money is something that touches upon almost every aspect when you live together. And money has the power to sour relationships. It’s one of the leading reasons for divorces. So it’s important to test your compatibility in money matters. So here are somethings that you want to talk to your partner about.
Discuss your values around money
This can be a good conversation starter. Instead of asking about the other person’s income or liabilities right away, you talk about values, which encourages the other person to step in and give an insight into what the outlook is toward money. You know what the similarities or the differences are in how you look at money. For example, your partner may list buying a house as the top most aspiration while you may value travel or adventure. This will help you to see the bigger picture and how you can support each other financially going forward.
Existing investments and future planning
In order to meet your future goals together you may need to create a collective fund. So talk about the existing investments and what would be your suitable options going forward. You can also take suggestions from a financial advisor to figure out your options. In the process of planning for your collective goals, don’t forget your individual goals.
Your spending habits
Spending habits are different in different people. While one might be an impulsive shopper, another might be a hoarder. It’s important to understand each other’s spending pattern in order to avoid clash of interest in future. Aspirations are many and resources are limited, so you may need to plan your expenses going forward and tweak your habits a bit here and there to fit into your collective financial vision.
Existing debts and liabilities
When you get married, you become responsible for each other’s liabilities. So if there is an education loan that’s yet to be paid off, you better get a heads up on that. Enquiring about each other’s loans and borrowings help you to know where they stand financially and if you can help them in any way. Also try and understand each other’s credit history and CIBIL score because low credit score reduces your chances of getting loans from banks and other financial institutions.
(The writer is CEO, BankBazaar.com)