Love and Money

There's an age-old adage says: “Money can’t buy happiness.” 

We’re all familiar with that one. And there’s certainly a truth to it. Happiness comes from within; money itself cannot give us that. 

However, it’s also true that life requires money. Our joys and interests; our health; the fundamental basics of life. All require money.

Not exactly groundbreaking stuff, I know. Life and money "go hand-in-hand", as they say. So why would we exclude all the "life stuff" when we're looking at our finances?

When it comes to finance, we should stop thinking about it in terms of just our money. That may sound strange, but think about it: Our finances and livelihoods are tied together more than we think.

Finances lay the foundation for our quality of life. Our needs, wants, and goals are all reliant upon the money we have to make them a reality. So when we look at our finances, we need to look at the bigger picture – at our lives as a whole. 

That goes double for those in relationships. 

When it’s no longer “just you” in the picture, communication is critical. After all, maintaining a successful long-term relationship and continuing to thrive over the long haul is a team effort. 

There is no “best way” for couples to manage their money. Each couple is as unique as the individuals who establish them. So it makes sense that money management depends on what works best for you as a couple.

The truth is many approaches can work. But no matter what approach you choose, open and honest communication is critical, as some financial details become intertwined when you’re married. 

Three financial topics you and your significant other should discuss in order to better manage your finances include:

Commingling Credit: Once you’re married, your credit score no longer stands alone. Be honest about existing debt from the beginning so there are no surprises down the road. 

Drafting a Budget Together: Lay out your joint income and expenses – both combined and separate. Once you have a realistic idea of your cash flow, work together to create a monthly budget that works for both of you.

Planning for the Future: Be honest about your long-term financial goals. If you want to retire to a secluded log cabin in the mountains or travel the world with your significant other, communicate those dreams so that you can prepare for the future together. 

Whether it's coming up with an investment strategy, a debt payoff plan or a monthly budgeting approach, the most important thing is that you are doing it TOGETHER.

And remember: whether you’re doing this as a sole individual or as a team, you’re not alone. If making an effective plan feels like tricky terrain, a Certified Financial Planner (CFP professional) can help you clarify your goals and get you on the right track.