Welcome to the June edition of Financial Friday, Oklahoma Money Matters' online personal finance question and answer forum. This month, we're answering a question about combining finances with a partner.
I just got married, and my spouse and I are trying to merge our finances. What's the best way to get started?
All relationships look different, whether it’s a marriage, cohabitation or a long-distance partnership. There's no universal blueprint for navigating life with a partner; each couple charts their own course.
Although there's no precise roadmap for merging finances, several principles can ease the process. Whether you're living together, considering marriage or you’ve just tied the knot, these principles will help you combine your finances more easily.?
- Look Internally First Before diving into joint finances, ensure both partners understand their financial situations clearly. Each should have a spending plan that outlines expenses, assets, debts, and other relevant financial details.
- Establish Ground Rules Together Money is one of the top reasons couples split up, so transparency and honesty are crucial. Discuss openly what level of financial integration you both want. Do you prefer to completely merge accounts, divide financial responsibilities or keep separate accounts? There's no one-size-fits-all approach; the key is alignment and commitment to agreed-upon rules.
- Hold the Judgment Accept that each partner may bring financial baggage, such as debt, into the relationship. Create a non-judgmental environment where both parties feel safe discussing financial matters. Focus on solutions and moving forward together rather than dwelling on past decisions.
- Slow Progress is Still Progress Combining finances is a process, not an event. Break down discussions into manageable steps, addressing one aspect at a time, like existing debts or future financial goals. This way, you won’t feel overwhelmed, and you’ll be able to thoroughly consider each issue before making a decision.?
- Always Protect Yourself Only combine finances when both partners feel ready. It's essential to feel supported and valued in the relationship. If you’re not ready to combine your finances, that means there’s something else going on that needs to be addressed. Wait to combine finances until you're both on board.
- Joint Budget Creation Once ready, create a spending plan reflecting your shared financial goals and values. Remember to consider factors like income disparity and equitable distribution of expenses to ensure a fair and equitable division of responsibility.
- Discuss Long-Term Goals As committed partners, it's vital to align on long-term financial aspirations, such as homeownership, travel plans, education funds, and retirement savings. Sharing these goals fosters unity and mutual accountability.
- Regularly Communicate and Review Financial planning is an ongoing process. Schedule regular check-ins to review the budget, reassess goals, and address any changes in circumstances. Open communication fosters trust and prevents misunderstandings.
Ultimately, a couple's ability to manage finances together reflects the strength of their relationship. Transparency, teamwork and mutual respect are foundational to romantic and financial harmony. Couples can navigate the complexities of merging finances by prioritizing these principles while strengthening their bond.
If you'd like to learn more about managing your finances with a partner, check out our?Love & Money Learning Module?on OklahomaMoneyMatters.org.
?As always, if you have money-saving tips you'd like to share, send us an email at?[email protected]?or?submit a personal finance question?for a future edition of?Financial Friday.?Thanks for participating in?Financial Friday. It's never too late to take control of your financial future!?
Communication is key when it comes to managing finances with your partner.