Are You Financially Compatible With Your Partner?

Money management is a skill we must learn. We must learn how to save and invest better, not just individually but also in tandem with our significant other. Money managed well can lead to the realization of your dreams. Managed badly, money also has the power to sour relationships.

Here are some topics on which you can have discussions with your significant other. It will help you understand if your money habits and life goals are compatible.

Are You Transparent?

Trust is the bedrock for any relationship, and transparency helps build trust. Financial transparency would help a couple understand where they stand in life with regard to money management. What are you earning? Do you have loans? Do you have fixed financial obligations? Is someone dependent on you? These are some questions that should be discussed openly, since what you earn and what you’re obligated to allocate (like EMIs or medical treatment of a dependent) impacts the life you’ll lead together as a couple. Not disclosing facts pertaining to one’s financial state of affairs could erode trust in a relationship. On the other hand, being transparent about your money issues would create trust, empathy and the desire to tackle challenges – financial or otherwise – together.

Have You Discussed Your Life Goals?

You’re going to have goals in your life. Some of these goals could be individual in nature – for example, completing your higher education after marriage. Some goals would be shared – like buying a house, or planning a retirement fund. Fulfilling any of these goals would require money. As a couple, you must discuss your life goals and how you’re each going to contribute towards achieving them. On shared goals, you may be required to combine your income for best results. For individual goals, you’ll have to determine how one person can financially support the other. If you find pain points in your discussion on life goals, you must find ways to fix them.

Have You Spoken About Spending, Investing & Budgeting?

How you spend, save, and invest is absolutely critical to efficiently achieving your life goals. If you’re spending wastefully, not saving enough, and not investing smartly, you will struggle to achieve your goals. Spending – especially uncontrolled spending – can be a touchy topic among some couples. You must work together to fix money leaks and ensure you’re saving and investing adequately every month. Spending as per a budget, and investing systematically towards goals, are vital. Make sure you’re on the same page on these issues.

Have You Fixed Responsibilities?

It takes two to tango. Money management should not be left to one partner. The concerns, needs, and wants of the other person should also be taken on board before money decisions are taken. That said, responsibilities should also be shared so that one person does not feel the burden of managing money, settling bills, tracking insurance premiums, etc. You must share your financial responsibilities, find ways to leverage your combined income, and achieve the best results. 

(A version of this article originally appeared in the Financial Express.)

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