Though it can be daunting, navigating complex conversations and agreeing on how you plan to spend your money and manage your finances is a hallmark of a great relationship.
Throughout a relationship, there are many financial milestones to experience, celebrate, and endure. To set up both yourself and your partner for success, it’s vital to speak through many aspects of your current financial situation and future plans to ensure that you are both committed to the same goals and aspirations.
Discuss your existing debt and planned future credit applications
One of the most vital conversations to have with your partner is to share your existing debt and your planned future credit applications. This is not only important from a legal point of view – for example, if you wish to apply for a home loan together – but is also vital to help your partner understand your personal finances and how they can best support you.
When discussing your future credit obligations, it is important to elaborate what you plan to do – for example, you may wish to take out vehicle finance to purchase a car. If this is essential for your goals or growth in your relationship and as a family, it is worthwhile to consider various loan terms together and conclude on an option which best suits you as a family, or which you can afford personally.
Discuss your repayment plans and commitments
Timeously repaying credit is essential to managing your debt effectively. To help your partner understand your budget, explain your present repayment obligations to them, and outline what commitments you either have at present or in the near future. This can determine how you can best manage your budget, and your partner may be able to assist you in managing or keeping to your existing commitments.
Working through a shared document can help – our Financial Readiness Pack includes a detailed guide to aid you in managing your repayments and commitments.
Plan for future expenses together
Every relationship takes a unique course, and there will likely be expenses that you will need to manage together as time progresses. That could be something as simple as buying new furniture or appliances, to going on holiday, or to renting or buying a new home.
Outlining what you wish to do and what you need to buy can help you both form a budget and remain committed to the same goal.
Explore your saving and investment goals
While many people maintain their own savings accounts and investments, partners may opt to open a mutual savings or investment accounts to plan for their various goals. If you’re considering this, be sure to explore which accounts will suit you best and when you plan on accessing the sum of your investment – choosing the right financial product can help you both achieve your aspirations that much more quickly.
Prepare your savings and investment plans for children
If you plan to have children, it’s even more important to prepare mutual savings plans to contribute towards your child’s health, education, and entertainment. A useful way to set up these investments for the future is to commit to mutually saving a percentage of your income towards various expenses. Alternatively, you may wish to save the same amount each month, or delegate responsibilities such as medical care or school fees.
Lay out how you plan to split or retain your assets
If you’re considering a longer-term partnership or marriage and you have existing assets such as a vehicle or home, discuss how you plan to manage your assets with your partner as soon as possible. This can include whether you plan to keep assets in your name – such as your home – or share them.
You may wish to explore asking your partner to contribute to the maintenance or running of an asset (such as your home) or split the cost of either your rent or bond repayment.
Budget and prepare for the wedding you’d like to have
If you’re preparing to wed, be sure to explore just what kind of wedding ceremony you’d like to have and ensure that you budget for it sufficiently. Weddings can be expensive affairs and are often emotional events – meaning that it can be best to sufficiently prepare financially in order to have the day of your dreams.
Consider an antenuptial agreement
An antenuptial agreement is a contract signed by two partners wishing to be married who do not want to be married in community of property. This means that both partners keep their own separate estates and do not take on one another’s debts unless they take out debt jointly.
An antenuptial agreement can protect the estates of both parties in the event of divorce and can set out rules and agreements if both partners decide to end their marriage.
Set aside money for retirement
Lastly, an important factor to consider is that one day both yourself and your partner will likely retire – meaning that you will need to ensure that you are able to afford your living expenses when that time comes. Our helpful guide can help you determine how you can best structure your budget to ensure that you are able to retire in comfort.
