Couples & Finances | 3 Questions to Ask Your Partner 💕
Hey loving couples! 😘 Are you and your partner looking to be better with money? Our financial advisor, Bruce Porter, has some great tips for all couples – whether you’re newlyweds, soon-to-be-married, or just need to improve your communication about money. Check out our newest blog on financial tips and contact us by phone or email if you have any questions!
How Much Debt Do You Have?
It’s crucial to be transparent with your partner about the debt you accrue–before and after marriage. It’s also important to know if the debt is manageable. Sometimes, it can be easy to run up your credit card with small charges here and there. Before you know it, those small charges can add up to a substantial bill each month.
Not all debt is bad! For example, maybe one of you wants to take out a loan to help further your education. Down the road, this could potentially lead to a pay increase or open the door to an amazing opportunity that would increase your quality of life.
As a couple, it’s up to you to decide what kind of debt you’re comfortable with and what kind of payment strategies are most ideal for your relationship.
Would You Rather Invest in Property or Experiences?
Everyone deserves to pursue the life that they’ve always dreamed of. Have you had a conversation with your partner about what you want to do with your expendable income, or which phases of life you imagine tackling your pursuits?
Vacations & Traveling
Putting money aside to travel is a great way for couples to build meaningful memories! But it’s important for couples to be informed about the long-term impacts of traveling expenses and have a financial strategy to fund the experience.
For starters, come up with a plan for how much money you’re both comfortable spending on vacations and travel per year. Put together a list of your desired destinations, the type of experiences you want to have while there, and what type of accommodations you’d prefer. Spend time researching ways to save money without compromising on your experience–like off-season bookings or airfare deals.
You should also create an emergency fund so that if something unexpected comes up (like COVID-19) you’ll be more prepared to handle it without taking out loans or racking up credit card debt.
Couples & Property Investment
Buying investment properties as can be a great way to invest your hard-earned money. But before you do, make sure that you’ve done your due diligence and understand the risks associated with it. Consider getting the help of an experienced real estate agent or financial advisor who can guide you along in making informed decisions about investments.
Be sure to consider all the expenses involved in owning property—property taxes, insurance premiums, repairs, and maintenance fees—and how much cash flow you can expect from rental income. Good questions to ask your partner include:
- Who is applying for which mortgage?
- How will you split costs?
- What is your written agreement for the properties if you separate?
- Do you have an exit strategy?
It’s also important to think about what happens if one partner passes away—how will their share of the property be divvied up? Depending on your situation, it may be wise to set up a trust agreement so that ownership is determined through legal documents instead of informal agreements among family.
How Do You Want to Save Money as a Couple?
My advice is always to pay yourself first. After you pay your fixed expenses, set aside money for yourself and your partner before you have the chance to spend it on unnecessary expenses.
Set reasonable goals and come up with a timeline for reaching them. Are you going to save 10% of your income each month? Put away $100 per paycheck? Or maybe set a goal of having three months’ worth of expenses in an emergency fund? See what works best for you as a couple and adjust accordingly. And if you have a 401K that your employer will match up to a certain percentage, it’s essentially free money going into your savings account!
Additionally, take advantage of money management apps so that you can easily track where your money is going each month and make sure it’s being allocated properly. This will help keep you accountable when it comes to sticking with the budget that you created together.
Chat with The Resource Center Financial Advisors
At The Resource Center, we’re here to help you on your financial journey. We create personalized financial plans with strategies to help optimize your assets and reduce risk–all while keeping your lifestyle intact.
One of our biggest priorities is helping you feel confident and knowledgeable. With our financial planning services, The Resource Center will help develop a plan that diversifies your assets, stays consistent with your level of risk tolerance, and have a stress-free environment to turn to when you need help.
Catch Bruce Porter’s show Dollars & $ense Tuesdays at 3 pm on KOLR’s Ozarks Live. This radio show is a paid placement.
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Investment advisory products and services made available through AE Wealth Management, LLC (AEWM), a Registered Investment Advisor. Neither the firm nor its agents or representatives may give tax or legal advice. Individuals should consult with a qualified professional for guidance before making any purchasing decisions. 1763231 – 04/23