That is why during this month of relationship wellness, 1st Financial Center (1stFC) is sharing suggestions for how to deal with debt in a relationship.
Anyone who has ever been in a relationship knows how essential discussing money can be and how it can place challenges for the relationship. Numerous studies have shown that money is the number one reason why couples argue. Several factors including loss of income, spending too much, or even different attitudes toward money can play a part. In many relationships, only one-half of the couple manages the finances. Couples should be on the same page when it comes to their money. Being weighed down with debt is challenging enough on your own. But in a relationship it can complicate things even more. That is why during this month of relationship wellness, 1st Financial Center (1stFC) is sharing suggestions for how to deal with debt in a relationship.
Know Your Situation
It is important for both parties to know what is coming in and what is going out in regards to their finances. Not only should this include incomes and household bills, but it should also include credit card and loan payments as well. Using simple spreadsheets can help couples track the total income of the household each month while keeping spending in check; in turn, allowing couples to save money and hold an open, honest relationship.
Know Your Investments
When it comes to investing, statistics show that men are more willing to take financial risks than their significant other. Couples need to sit down and talk about investment goals and time frames. Review the investments together at least once a year. It is also important to make note of the investments. Both parties should be aware of the accounts and also know the investment firm with which the investment was made, account numbers, financial advisor with whom you are working with, total value of account(s), and types of investments in the account.
Don't Keep Money Secrets
Though it may be the most common secret among couples, it is still surprising to hear that most couples do indeed keep money secrets from each other. In a survey done by SmartMoney.com 36% of men and 40% of women confess that they had at one time or another lied to their spouse about the price of something they purchased. Big financial secrets can ruin a relationship. This problem should be handled delicately. If a spouse is stashing away thousands of dollars, it may be time to seek the help of a family finance professional.
Deal With the Debt
Of all the issues that trigger a fight in a relationship, debt will appear at the top of the list. Couples often do not see eye to eye on how much debt is too much and which kind of debt is bad. In most cases, one enters the relationship with a lot more debt than the other. While others who maintain separate finances can burden those with good credit scores. We all at one time or another bit off more than we can chew; yet, at some point couples have an obligation to disclose their debt with complete open communication. It is important to communicate a debt without dropping it like a bomb. The key is to work together to pay down the debt(s).
Plan for an Emergency
Even with a great career, a comfortable living, and no debt couples can find themselves unprepared for emergencies. With that being said, couples should set aside money on a regular basis and create an emergency fund of three to six months' worth of living expenses. It goes without saying that this fund should be in a safe place that both parties are aware of. Simply knowing that an emergency fund is there can reduce stress and be useful during a time of catastrophe.
Discussing purchases along with financial plans can help a relationship grow and form a solid foundation. To learn more about debt and information to become debt free contact 1st Financial Center (1stFC) at 888-755-4096 or visit them online at http://www.1stfc.com.
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