Good financial planning for a successful marriage
Good financial planning for a successful marriage
By Liberty
Money plays an important role in the success of relationships. When it is in scarce supply, it puts pressure on relationships and immense strain on marriages. Before you rush out and blow your budget on expensive dinners and gifts for your loved one, consider the fact that these are short term gifts, but solid financial planning can last a lifetime. So, if you’re in a relationship, make an important financial commitment, because it may be the catalyst that makes or breaks the future of your relationship.
Nomathamsanqa Maxalegu, Financial Adviser at Liberty, advises: “Budgeting for and planning your financial journey is as important for couples as it is for single people. However, if couples can work as a team and commit to a clear financial plan that is beneficial to both from the beginning of the relationship, you increase your chances of achieving financial success and therefore a more stable relationship.”
Serious financial hurdles can threaten your relationship. Under the current challenging economic environment, couples are faced with constant threats to their financial stability. As a result, couples need to be able to overcome serious financial challenges.
“Debt is one of the biggest financial challenges that couples need to deal with,” Maxalegu says. “It could be even worse for new couples planning to commit to a long-term relationship. One person could bring in a lot of debt into the relationship, which the other partner may need to help settle before they can start building their wealth.”
It may also be difficult for couples to decide who pays for what. For example, when moving in together, often you find that one partner already owns a property. This partner may stick to paying off the bond while the other partner pays for consumables like food and groceries. This could create some animosity in the long run. If the relationship fails, the partner who was paying for consumables, leaves with nothing.
It may also be difficult for couples to decide who pays for what. For example, when moving in together, often you find that one partner already owns a property. This partner may stick to paying off the bond while the other partner pays for consumables like food and groceries. This could create some animosity in the long run. If the relationship fails, the partner who was paying for consumables, leaves with nothing.
We all come from different backgrounds, having learned different skills to managing debt, spending, investing, or budgeting. Merging the two different skillsets could be a challenge. Some people are likely to believe that their way is better than another’s.
Financial infidelity is another serious threat to relationships. Some people don’t want their partners to know how much they earn, spend, or invest. This secret approach could become a major hurdle, especially if this partner is spending money recklessly and putting the financial stability of the relationship in jeopardy.
Maxalegu provides a solution to this challenge: “My recommendation is to involve a qualified financial adviser, or a certified financial planner, early in the relationship before a commitment to any form of union takes place. This will help you address financial infidelity before it becomes a problem.”
According to Maxalegu there are four benefits of joint financial planning, namely:
Financial planning as a couple fosters a more stable relationship because both parties need to be open about what they have, what their long-term financial goals are, and how they plan to work together to reach these goals.
People tend to lie to themselves about their own spending habits, just as they might lie to themselves about their own eating habits or health. Maxalegu says that an open discussion about each of your good and bad financial habits can open the door for more honest conversations.
With both parties working towards a common goal, the couple can better commit to the strengthening of the relationship. If financial challenges arise, both parties can realign their spending habits to ensure that each party achieves their financial goals. This shows commitment and love for each other.
Finances and money talks are taboo for many cultures. However, if couples can communicate openly about their finances, chances are, they can communicate better on other parts of the relationship too.
At Liberty we believe that financial planning for couples is essential for a wealthy financial future. So, if you really love someone, take the time to have an open and honest conversation about your finances before it is too late.
