When you are in a relationship, you should both be on the same page when it comes to money, especially if you live together and share bills. Money can easily come between two people if it is not properly discussed or managed. Whether one person is the sole provider, or you earn equal wages, it is important you share the same expectations and ideas about how to manage your budget.
If you want to talk about budgeting with your partner, here are some top tips on how to approach the topic.
Discuss your expectations
How do your spending expectations compare to your partners? You may want to focus on house renovations or saving for a car, whilst your partner is keen to book a summer holiday. It is important to sit together and discuss your financial plans for the year, giving each partner a chance to feel heard.
Things you discuss may include how much you want to put into savings, spending limits in certain areas, and any debt repayments you need to factor in. Taking time to discuss these ideas now will help avoid any arguments later about unexpected purchases or a lack of savings.
Determine the necessities
Certain expenses need to be prioritised - paying your monthly rent or mortgage, bills, and food shopping to name a few. Work out how much these necessities cost and how you plan to pay for them. Will one of you cover certain bills, or will you go halves on everything?
Once you know how much of your monthly wage is needed to cover living costs, you’ll be able to work out how much is left over for non-essentials and the things you want rather than need.
You won’t always agree with your partner, even when it comes to money, but it is important to learn how to compromise with one another. Whether your money is shared or separate, listen to your partner's opinion and take it into account whenever you make a financial decision. There may be times you have to spend money on unexpected costs such as urgent car repairs or covering bills if your partner faces a change to their income.
Be honest about debts
If you need to budget so you can pay off debts, ensure your partner is aware of the true extent of your debt and how you plan to deal with it. Lying about money will only make issues worse as they are likely to find out the truth somewhere down the line. With your partners support, you will feel more confident in repaying your debts and can create a plan that works for both of you.
Make a spreadsheet
It may not sound fun but having a spreadsheet you can both access to track your income and outgoings allows you to see a full financial picture. This is also a great way to find areas where you could be saving money. You can set a budget for things like the food shop and leisure activities, and control how much you each spend every week.
You may find you and your partner have very different attitudes or opinions when it comes to spending. One of you may love to splurge, while the other is an avid saver. That’s why it is important to have an ongoing conversation about your finances and how they may change over time. Planning, budgeting, and making decisions together can help you set out financial expectations so there are no grey areas.
About Morses Club
Budgeting carefully and saving a bit of money can really help with those unexpected emergencies, but it isn’t always possible to plan for every expense. At Morses Club, we provide cash loans, sometimes referred to as doorstep loans, to help take care of those surprise costs. Doorstep loans aren’t right for everyone so if you are considering it as an option, it is important you understand how it works before you apply.