Common mistakes of finances as a couple
Published 03/23/2022 | Last updated on March 24, 2022
Correctly managing the family economy when living as a couple is one of the keys to success for that relationship to work. For this, it is important to avoid making some mistakes.
The domestic economy is a crucial factor for the success of a love relationship. Having the same financial goals, sincerity, and trust between the relationship members are vital for maintaining healthy family finances.
One of the most important and most challenging steps for us to take when we begin to share our lives with a couple is managing our finances.
Managing income and expenses can lead to an argument with our partner on more than one occasion. That's why having some personal finance knowledge is so important.
Today we want to talk to you about the most common mistakes we make when managing our finances as a couple. It will surely help you avoid arguments, achieve your goals, and control your money correctly.
At El Paisa Multiservices, we recommend you avoid making the following mistakes:
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Don't talk about money
Some couples don't like to talk about money. It is an unromantic subject, and it is not usually delightful, but it is indispensable.
Transparency and sincerity in the field of love and finances are decisive. Ideally, both members of the couple talk openly about their debts and income to set truly achievable goals.
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Not make things clear
Everything by halves or the one who charges the most pays the most? These questions must be resolved to avoid reproaches in the future. In addition, whatever the couple's choice to organize their finances, both must be aware of the family economy. It is not recommended that one take complete control of the money since both must agree upon financial decisions.
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Spendthrift vs. Stingy
Both being the spendthrift and the stingy of the couple can negatively affect the other.
How could it be improved? An excellent way to deal with the disparity of vision on spending that some couples present is to establish common savings goals: a trip, buying a car, or having a baby are common goals that will motivate you to stick to your budget, achieving outstanding results. Remember that "union is strength."
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Economic contingencies
Couples usually forget to consider economic contingencies in their financial management. As you are two, the economic contingencies are doubled. The dismissal of your partner, for example, can be more than enough reason for your personal economy to falter and lead to more problems, even a breakup.
How could we improve this? With an emergency fund that protects you from unforeseen expenses (the dismissal of your partner or yourself, the breakdown of the car, etc.). You will live more peacefully, and your economic and personal stability will be more armored.
The money you allocate to that emergency fund will depend on your needs. It is usually recommended to have enough saved to cover at least 3 or 6 months of your recurring expenses.
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Not having a financial plan
Another widespread mistake in couples is when there is no financial plan. Not having an established strategy can result in a fatal imbalance of the economy in the home. This usually happens with couples who have just started a life together and live under the same roof to avoid misunderstandings. It is always good to make it clear from the beginning. For this reason, it is essential to create a strategy with economic responsibilities, from defining financial limits to setting aside basic expenses.
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Financially unaware of your partner
One of the most common mistakes is not knowing the financial habits of the couple, that is, expenses, lousy card management, or being disinterested in household expenses. Therefore, it is essential to know the financial practices of the couple and, above all the same, to reach agreements and solutions to improve the mutual economy and avoid bad financial habits.
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Talking once about money is not enough
Things change from day to day. A job change or a move are situations that drastically alter our savings goals. Therefore, it is necessary to set a date on the calendar to review your finances at least a couple of times a year. You will reformulate common objectives and adjust your budget according to the new circumstances.
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Don't lie about how much you earn per month
The falsehood appears to seek to benefit from the distribution of expenses or not to be so "damaged."
When the division of expenses is decided and taking into account that income is an essential factor in this division, the stimuli to "pull-down" the couple's income declaration to balance the expenses increase.
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Don't think that dividing 50 and 50 is always the solution
Many people think that the solution to the problem of dividing expenses is to divide 50 and 50 (half each), opening a joint bank account and each contributing in equal parts the monthly money that will later be used for current expenses. This arrangement works perfectly as long as the income of both is similar, but it can be experienced as an injustice by one of the two parties if there are differences in income.
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Giving to one person the two total control of the money
It is widespread for couples to decide that one of the two members takes control of the personal finances of the house and that the other delegates that responsibility and assumes a more passive role. Although it may seem comfortable, this behavior is not the best since the person in control can quickly become empowered, bringing problems and arguments.
Unfortunately, there is no single answer to managing finances with your partner, since depending on each situation, some things will work better than others. We invite you to organize yourself with your partner and decide what is best for you.
At El Paisa Multiservices we want to help you with your finances and give you the best advice. You can contact us if you have questions about our services.
By Ingenuity & Solutions
