How to manage finances is perhaps the most volatile region of discord faced by couples. Couples and money both are two faces of a single coin. Each person brings unique financial practices and values in the relationship, which can contribute to conflict. If the situation is not dealt nicely, differences over financial issues can overshadow everything else in the relationship and possibly head towards its disappearance.
Couples need to invest time to discuss finances and work together to develop a financial strategy in order to find good solution. Mentioned below are some important questions which help couples in this direction.
Current financial situation:
To get a perspective of their current reality, couples must calculate their total debt (including debts that individually brought in a relationship) and repayment terms. They should also calculate their combined income, taking into account taxes. Personal finance should be in the direction to save money for future uses to prevent from financial crisis.
Starting with the necessary information, a couple can develop strategies to pay off debts quickly and develop a budget to follow.
Responsible for managing the money:
If separate bank accounts are maintained, each person can be held liable for its own account. In such cases, decisions will be made about what bills are paid from which account. If the couple has a joint account, however, it often works best if one person takes the lead. This person must regularly disclose their financial situation with the partner, especially when concerns are raised. In today's time if you don't have managing money capability from your starting days then in future you have to suffer a lot.
Standard of living we can afford:
A higher standard of living necessarily costs more money increases the level of stress, and creates financial pressures within the home. A lower level of life may mean sacrifices, but it also results in less stress and more financial freedom.
Plans for retirement:
The amount of money needed to save and couples earning through investments is primarily determined by their expected retirement age. The sooner they hope to retire, the more they will need to save and invest to allow that to happen. In addition, if the couples are planning to make many trips in their retirement years, they will need to save more. The earlier a couple started to prepare for retirement, the better.
Ignoring these types of questions could mean disaster for a couple. Couples who are equipped to answer questions or to address the problems would be wise to seek the help of a professional financial adviser. Otherwise, many couples seek entry and the mediation of the clergy or a trusted friend. Whatever the process, a couple chooses, when looking to commit, they would benefit by establishing agreed-upon financial strategy for the benefit of marriage. If you want to become financial freedom after retirement then you have start saving money from yet now.
Feel about saving:
Saving for advance is all about delayed gratification; there is no immediate payoff. That sits well for Some Folks, others aim really dislike it. Discussing money and what we do with it can be a touchy subject, and You Will Both probably-have strong feelings. Purpose being white respectful of Each Other's perspective and working together is Necessary for a healthy financial life. A Discussion about money is the starting points (and Most importantly share) any of real financial Plan That Works. These conversations should be The Beginning of year "I do" that lasts forever.