Money is not on the list of romantic topics. But it is the leading cause of stress in a relationship. So if you’re interested in lasting longer than saying “I do,” there are some basic money talks we recommend having with your partner as you decide to spend your futures together. Being open and honest about money is a key to a happy successful partnership and one of the best ways for couples to manage their money effectively.
These can be uncomfortable and overwhelming conversations to have with your partner. That’s why we created the Personal Capital Marriage Guide to help you navigate the wonderful and complex financial path to marriage.
Determine Financial Compatibility
Are you both on the same page financially? Here are some quick questions to ask yourselves:
- Do you or your partner have any debt, and if so, how much and what kind?
- What is both of your current and future income picture and job stability?
- What kinds of long-term savings patterns do you both have?
- On the flip side, what kind of spending patterns do you have
- And lastly, what are your long-term financial goals?
Discuss the Details of Cohabitating
There’s a lot to think about when you think about living with someone – presumably for the rest of your life. Before you combine households, it’s a good idea to talk about who pays for what, so you’re not figuring this out when you’re committed to living with this person for at least a year or more. Will you be splitting rent equally? What if there’s a mortgage and you have property taxes? Should you both be paying this; what if only one person is on the title?
Read our free Personal Capital Marriage Guide to learn some detailed questions to help you financially plan for your future with your lifelong “roommate.”
The Fine Print: Budgets & Paperwork
The financial fine print is an important part of building a foundation with your partner so you can set long-term financial goals and actually achieve them. Do you have a household budget? How much do you want to pay for your wedding? Should you have a prenuptial agreements? Are you going to combine your finances or keep them separated? And what if one of you is bringing a dependent into the marriage?
Crunching numbers and agreeing on paper may seem like an unwieldy – and unromantic chore – but a little goes a long way in this case to smoothing the path for your marriage down the road.
Check out our free Personal Capital Marriage Guide to learn more about finances and marriage, before, during, and after the wedding.
The Marriage Guide Series:
- Guide: Marriage, Weddings and Money
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Amin Dabit, CFP®Amin Dabit is a Senior Vice President and Financial Planning Manager with Personal Capital. Along with the EVP of Portfolio Management, Amin helps lead Personal Capital’s financial planning experience and advice. Amin brings over a dozen years of experience in private wealth management and financial planning. Amin works with the advisory team to identify and establish strategies for reaching clients' financial goals by providing comprehensive, customized financial advice designed to improve their financial lives.