- February 22, 2024
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Written by: Jade Bethel, M.S., B.A.
Love and money, two things that are seemingly unrelated, but are inextricably intertwined. Being in love can give you a feeling of what seems like never-ending bliss. Yet, safeguarding this bliss entails addressing critical facets of life, notably managing your finances. Here are a few tips for keeping financial hardships at bay while fostering a happy, healthy, and long-lasting relationship with your spouse or partner.
First and foremost, it's crucial to foster open and sincere communication regarding your financial expectations. Engage in discussions such as, "What does financial success mean to you?" "Where do you envision our lives in five years?" "What roles and responsibilities are you comfortable with in our partnership?" and "What career path or work schedule do you prefer?" Recognize that these preferences may evolve over time, necessitating regular dialogue. By doing so, you eliminate any ambiguity surrounding your mutual expectations. Ideally, these conversations should begin before marriage or shortly thereafter. It is important to establish a strong financial plan, setting the foundation for both short-term and long-term goals.
Once you've established shared financial goals, the next step is to initiate an emergency fund. Essentially, this fund serves as a safety net for unforeseen circumstances, providing financial stability during difficult times. It's advisable to maintain an amount equivalent to 3-6 months of your combined annual salaries in this account. While you may have had individual emergency funds before entering the relationship, consolidating into a joint account with your spouse is prudent. As your entire life is now shared, your finances should be no different.
As your entire life is now shared, your finances should be no different.
Dealing with debt can pose a significant challenge, particularly for couples, as it impacts both individuals. It's essential to address and eliminate debt promptly to avoid potential long-term repercussions. Prioritize paying off debts with the highest interest rates first, while also guarding against relapsing into detrimental spending habits. Even seemingly minor expenses can accumulate over time, affecting your savings. Maintaining discipline in spending and establishing a mutually agreed-upon budget are key strategies to prevent this from occurring.
Finally, investing in your future is a vital aspect of nurturing growth as a couple. Engaging in a retirement plan stands out as one of the most effective methods to achieve this. This is where a lot of your long-term goals come in because based on what you both see as a wealthy future for yourself, determines what your plan will look like. As a general guideline, it is advisable to allocate at least 50% of your income towards retirement savings. Starting a retirement or legacy plan has been made easier with the help of RF’s array of products such as the RF Pension Plan, the Provident Plan, and the Private Wealth account. Our team of experienced professionals is dedicated to supporting you and your partner as you embark on the journey of financial planning, paving the way for a brighter future for yourselves and your expanding family.
...it is advisable to allocate at least 50% of your income towards retirement savings.
To delve deeper into this subject visit www.rfgroup.com/loveandmoney to watch a replay of our “Love & Money: Building Wealth As A Couple” webinar featuring RF’s Business Development and Financial Advisory Manager, Allan Shine.
For more information about investment management and legacy planning, visit: www.rfgroup.com or call to schedule an appointment with an RF Advisor:
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