5 Smart Financial Moves for Young Couples

5 Smart Financial Moves For Young Couples Published on April 5, 2017 Like5 Smart Financial Moves For You ng Couples

David Milberg Shareholder at Milberg Factors, Inc.

One of the greatest investments a couple can make regarding the satisfaction of their marriage is to develop and maintain healthy financial habits. Proper money management is a key component of a contented relationship. Disagreements regarding finances is one of the primary factors of relational dissatisfaction, but sound financial planning can go a long way towards establishing an enduring union.

Here are 5 strategies designed to ensure financial success: 1. Communicate Effective communication is another vital aspect of a healthy, happy bond. Communicating about money can be especially challenging at any stage in a relationship, but its importance cannot be overestimated. Be willing to openly share your fiscal past, current debts, and financial needs with one another. The sooner this habit is formed and developed, the more economic disputes can be avoided in the future.

2. Agree to disagree Financial experts have identified various money “personality� traits.

Some prefer to spend while others take comfort in saving for a rainy day. There are those who take risks with financial investments while others prefer more safe and secure options. Finally, there are the number-cruncher types who actually enjoying working on a budget while their counterparts prefer freedom and spontaneity in terms of how and when they spend money. Take the time to identify one another’s traits while embracing the positives and realizing the limitations of each.

3. Create a plan Benjamin Franklin said that if we fail to plan, we plan to fail. This nugget of wisdom certainly holds true for financial planning. Creating (and following!) a budget is one of the most effective ways to manage one’s finances. Thinking of a budget as a tool that best allows your money to work for you rather than a set of rules to which you are beholden, offers a feeling of control over one’s financial situation. A simple internet search will yield several free options for creating a budget.

4. Plan to spend While proper money management is dependent upon saving for the future, be willing to allow an agreed upon level of spending both as a couple and as individuals. One of the most effective ways to eliminate financial disagreements is to create a plan to spend money as well as to save it. Discuss together the things that are the most important to each of you. For example, one person may prioritize a yearly vacation while another may prefer a weekly dinner out. Set an agreed upon amount for each person’s priority and then allow for its funding. If possible, allocate a weekly or monthly amount for each individual to spend on incidentals.

5. Dare to dream In the midst of determining to become financially responsible, do not forget to dream. Consider one another’s goals and labor together to achieve them.

Wisely managing your money and jointly working to create a financially secure future is one of the best ways to ensure that the relationship you enjoy today will be thriving for years to come.

David Milberg is a financial analyst in NYC.