Financial conversations with your partner are always the hardest. But managing money with an open line of communication, reasonable expectations, and regular check-ins can make things much easier.
Following are Michael Pellegrino’s must-have financial conversations with your partner before marriage.
Inquire About Each Others Attitude Towards Money
Are you a spender or a saver? Some people are content with a maxed-out overdraft or credit card balance. This can make your partner feel overburdened or obligated to cover all costs.
When one partner earns significantly more money than the other, there may also be problems to work out.
Michael Pellegrino suggests sharing financial decisions and having an open dialogue about money to help reduce conflict and tension.
Combining Finances and Bank Accounts
You and your spouse will need boundaries and rules, whether you are getting married or living together. Here are Michael Pellegrino’s suggestions to start the conversation:
- Keep your finances and sources of income separate. Bills and expenses should be divided equally or according to each partner’s income.
- 100% financial integration Everything I have, including debt, inheritances, net income, and savings from the past, is yours.
- Maintain individual accounts, but create a joint bank account to handle shared expenses. Each person deposits a set sum each month into the account.
- Take your time before combining finances. Contribute a portion of your income to your personal accounts and the remainder to joint accounts, gradually altering the ratios.
- Consider one person a saver and the other a spender, and keep separate accounts for each. The “spender” focuses on where the money goes, whereas the “saver” devotes the whole of their net earnings to long-term objectives.
Decide on Your Money Goals With Michael Pellegrino
Discuss with your partner what your future financial goals are. Talk about where your finances currently stand and how you want them to look in the future, as well as whether or not your spending patterns and financial objectives mesh well together.
Imagine that you’ve always wanted to own a house and that you’d like to do it as soon as possible. Is your spouse on board with the idea of forgoing expenditures like holidays or paying rent for a home in a desirable location until you have enough to put down a down payment? On the other hand, suppose your partner had extremely ambitious financial goals. Would you be motivated to work toward and make compromises for them?
Inquire About Their Financial History
Talking about money can cause uneasiness and even panic for some people. Avoiding the subject could seem easier than dealing with it.
When you’re jointly organizing your finances, transparency is crucial. This calls for being open and honest about debt, credit ratings, and other matters. From there, you may tackle underlying problems, create practical goals, and decide what your definition of financial accomplishment as a couple is.
Michael Pellegrino‘s Wrap Up
Delaying the financial discussion won’t solve any financial difficulties, according to Michael Pellegrino. In fact, it might exacerbate the problem. Whatever your situation, it’s best to face reality as quickly as possible.