Even if you feel like you and your partner are compatible in most aspects of your relationship, often things can fall apart quickly due to money.
So, are you and your partner financially compatible?
There are certain factors you can look at which can help determine how you and your partner think about money. Take a look at the topics below and see how similar your answers are.
- Savings and spending habits: Do you regularly put money into a savings account or live pay from pay-to-pay? Do you buy what you need or what you want?
- Debt management: Do you make an effort to make repayments on time? How often do you miss a bill due date? Do you make extra repayments on loans or only the required minimum?
- Borrowing money: How many credit cards, loans and other ongoing financial commitments do you have?
- Long term goals: These goals may depend on how old you are, but it is still a good idea to have a general idea of what each person wants to achieve down the track as it could affect your finances. For example, at what age do you want to retire? Do you want to build an investment portfolio? At what age do you want to be free of debt?
If you find that you and your partner are not like-minded financially, this doesn’t mean you relationship is doomed to fail. If you are willing to work together, it is possible to make your relationship stronger financially.
- Full disclosure: Just like all aspects of your relationship, if you are lying or keeping secrets, it could cause a lot of problems. By being open and honest about any bank accounts, savings and debt, it will help you create a more realistic budget to help meet your financial goals sooner.
- Recognise financial strengths and weaknesses: This is a great way to divide responsibilities as you can pick duties based on what each person is good at, instead of forcing each other to do something they hate.
- Work out a plan and create responsibilities together: If you find that you and your partner are not getting anywhere financially, you need to sit down and work what is working and what isn't. By giving each other responsibilities such as paying bills or regularly checking your budget, it will help lighten some of the workload and also help keep communication lines open. Also, by establishing a budget and savings plan together, it may help you achieve your financial goals quicker.
Many couples may assume that their partners are on the same page when it comes to their finances, but this isn’t always the case. Many of the decisions you will have to make together will involve money somehow, so the more open and honest you are, the stronger your relationship will be financially.
See if you qualify. To get a more accurate idea of how much you can borrow with State Custodians,