Money can be a touchy issue between couples. Almost everyone knows about that one relationship that broke down because both partners didn’t talk about it. Often the reason for a conflict of ideas, when it comes to money, is because each of us are brought up with different values when dealing with it. As a result, everyone has a different mindset for spending and financial planning.
So, what can you do with your partner to manage your finances well and stay out of debt?
Sit down and Talk About it
The first thing to do is to sit down and talk about it. Money is a touchy issue and partners have many assumptions when it comes to finances. There are no surprises here – some of these assumptions are wrong. You both have to do this as a team.
Track your Expenses and Find out Each other’s Spending Habits
Start tracking each of your expenses and at the end of the week, sit down together an analyze them. Catch those unnecessary expenses like visiting the ice-cream store too many times or ordering lunch, etc.
By cutting down on unnecessary expenses, you have more money to pay the debts.
Create a Budget
For the next month, create a budget you can follow. It plans your spending and helps curtail unnecessary expenses.
Review your Debt Situation
Regularly keep track of your debt. You can either do this by going through the credit bills or better yet, going through each other’s credit report. Even though you are a couple, the credit reports are still separate. It gives you an overview of all the debts you are under and this way you can ensure it doesn’t go out of control.
Remind Each other to Pay the Month Payment
Both of you should take up the job of reminding each other to make the monthly payment. Most of the times,a debt problem arises because one (or both) person has skipped paying the monthly payment. Using a budget, you should keep money aside for paying your credit cards and loans.
Make a List of your Future Dreams
Debt can be a problem that can hinder future plans. It is best that both of you are aware of each others dreams. Share it with your partner and incorporate it with your financial plan in a manner that does not get you into serious debt.
Not talking to each other, avoiding discussions on financial issues and expecting your partner to read your mind is a big mistake. Always make big financial decisions together, whether it is buying a television, car or even a house. Your financial and debt situation affects your partner in more ways than you think. A relationship is a team job and so is managing debt.