Most couples quickly realize that some marital issues must be approached in a delicate manner. Finances is one of them. It’s important to find ways to understandingly discuss saving plans and spending priorities, especially if you have any concerns about attaining your financial goals. Unresolved issues of any kind, definitely including financial issues, can lead to resentment and other pains, which can cause irreparable fracture in the relationship. Not good.
Here are some tips to help if you have any difficulty discussing financial issues with your spouse, including some ways to get the conversation started:
Make Time. Communicate with your spouse that you would like to set aside a specific time to discuss short-term and long-term financial goals and planning. Write your ideas down and share them, if it’s saving for retirement, a house of the beach, or a second business. Let your spouse know their assistance is a necessary and appreciated aspect of being able to achieve your goals. If you want to start a family or already have little ones (children), share your aspirations to create a college fund. Express how important it is for you both to share, discuss, and implement long-term goals, which will often require short-term sacrifice.
Go more than halfway to meet your spouse. Talk about your own specific sacrifices and how you will do your part to achieve your goals, and nicely challenge your spouse to see if they can do the same. Start small, perhaps $10 to $30 a week. Make sure you show you are definitely doing your part in giving up certain expenditures, if it’s a weekend movie or spending money on shopping. Once you and your spouse are making progress in one area, broaden it to include a comprehensive household budget. Keep communicating how your spouse is an important, integral part of being able to achieve your financial goals and planning for your family’s financial health and well-being. Offer to save specific amounts of money and place in a joint emergency account/fund, save for a down-payment on a new car, or stock away some money into a retirement fund for your future nest egg.
Find out your credit score and get a copy of your credit report. If you plan on a large purchase that will require a lone, like a new home or car, it’s imperative both of you are familiar with your credit profile. Every 12 months, everyone is entitled to a free credit report from each of the 3 credit reporting agencies. You can create an account and log into annualcreditreport.com and get copies of your reports. Or, you can purchase one at any time from myfico.com for only $19.95. After receiving this information, have a seat with your significant other and review both of your credit scores and debt-to-income ratios. When assessing loan applications, loan assessors use this information.
Communication is a fundamental key to all relationships.
Reinforce to your spouse, not only in word, but in deed, you will help them achieve their goals. Give equal weight and appreciation to your spouses career and financial goals, as you are both in it together, a genuine partnership. Ask your spouse about their short and long-term financial goals, and their expectations on how to achieve them. Once understood, it will make it easier to create your comprehensive household budget.
Figure out your net worth and share with your spouse. Look at a list of liability and assets. Include all income resources, if it’s a supplemental, full-time, or part-time income. And, the other side of the balance sheet, all of your liabilities: monthly expenses, existing outstanding loans or credit card debt, investment accounts, or insurance policies. Together, after sharing all of this information, you and your spouse can work to develop a road map for your secure, financial future . Putting on the table your current financial circumstances, goals, and aspirations shows that you care and are willing to make the sacrifices and put in the hard work needed to achieve your combined financial goals.