Moving through life together is an important and crucial step in any relationship. It is also a sign of how serious your intentions are, and it is also a big change for both of you. Although you can get to know someone well enough when you are just dating, nothing compares to life with another person and frequently occurring everyday problems in everyday life.
Why financial arrangements matter
For couples who are going to arrange a life together, there is something to say to each other before making such a responsible decision, and one of the most important things to talk about is money. Finances are often a sore subject in a relationship, and about 34% of people in a relationship say this causes the most problems and misunderstandings.
Having a few key financial conversations before you start a life together, you will avoid many potential problems in the future. These important “financial negotiations” will begin your life together with the right foot.
1. Tell us about your current financial condition.
Although it may seem strange that someone will reveal your financial situation, even if this is your partner, you both need to find out. A good start is to share your monthly income, credit points and debts.
It’s all important to know, so that you can figure out how much you can afford to spend on a house, and that you know in advance about any potential problems with obtaining ownership of housing. For example, if neither of you has a good credit rating or a sufficient amount of money, it may take longer to find a place to rent, or you may need to make a larger down payment.
In addition to the above information, it is also useful to find out how responsible your partner is in relation to finances. Here are a few questions you can ask each other to evaluate how well you manage your finances:
- Do you have emergency stock? If so, how many months have you saved?
- Do you save money every month?
- Do you have a retirement account?
2. Decide how you will separate accounts and funds
Living together means having shared finances, so you need to decide how much each of you will pay. Many couples either divide accounts on the basis of income, or divide 50/50.
To split revenue-based accounts, try the following:
- summarize your respective income;
- divide each of the points of your income by the total income;
- pay a percentage of the bills corresponding to how much of your total revenue.
Let's say you earn 7000 rubles a month, and your partner - 3000 rubles. Your total monthly income is 10,000 rubles, and you earn 70% of the total, so you pay 70% of the bills. Although this method leads to the fact that one of the partners pays more, for both partners it is a good way to contribute.
Another option is to divide everything by 50/50. This is a fair decision that can work well when you and your partner earn the same amount of money. Nevertheless, this can be problematic with a large discrepancy in income, because a low-income partner will contribute a clearly smaller amount to the total boiler, while with a higher-income partner this solution works very well.
Once you have decided how you will split the bills, you also need to decide who will be responsible for paying each bill.
3. Talk about financial goals
One of the advantages of a serious relationship is that you have two incomes, which means that you have more money to achieve your financial goals. But it will only be useful if both of you are focused on these tasks. If you save on the initial payment for the purchase of a house, while your partner spends every penny he earns, this can lead to problems in your relationship.
To make sure that you both have the same goals, you should find out what financial goals you have, such as saving money for a house or paying off a debt. If any of you still do not have goals, then now is the time to find out and make a list of common aspirations for yourself.
4. Find out a way out if you break up
Couples often avoid this conversation, and for obvious reasons. No one wants to discuss the possible demise of their relationship.
This may be unpleasant, but it is something that you and your partner need to discuss without fail. Couples who skip or ignore this step often have erratic breaks, because they never decided who should leave what and who should leave with nothing or part of, for example, jointly acquired (acquired) property.
What should you discuss in terms of a possible gap? Here are the main topics to find out:
- Relocation - who stays and who leaves? If neither of you can afford to buy an apartment or rent a home alone, will you both move? If you need to violate the lease, how will you share any fees?
- Security deposit (deposit) - assuming that you both paid part of the amount, you need to decide whether the partner who will stay will compensate the amount to the one who leaves immediately or if you will need to wait until the lease expires and receive a refund from the lessor.
- Furniture and other things - you must carefully go through all your things and decide who will pick up what. Thus, in the future, there will be no debate about who will receive the TV or silverware.
If you run into the worst case scenario, you'll be glad to talk about it in advance, because it is much more stressful to do this in the middle of a break.
Prepare for life together in advance
Since moving to your partner is an important decision, it makes sense to make a lot of preparations in advance. “Money negotiations” guarantee that you and your partner are well aware of all aspects of your own financial condition, and in the future, if you discuss all the nuances in advance, the money scandals will disappear by themselves or, at least, you will find a solution to some issues which will equally suit both of you.