Money is one of the most common reasons why some marriages and relationships end. When two people come together they often have different ideas around money and if those ideas are not talked about, they can lead to serious conflict. According to News24, even couples who have been married for a long time can find their relationship in trouble because of disagreements about spending, saving and other financial decisions.
One of the warning signs in a relationship is Financial Infidelity. Investopedia states that Financial Infidelity occurs when couples with combined finances lie to each other about their money and what they are spending it on. For example, one partner may hide significant debts in a separate account while the other partner is unaware. Another example is when one partner creates large expenses without discussing the matter between them. This will often leave the other partner feeling betrayed thus damaging trust in the relationship.
Experts believe that the only way to address this is through open communication. No matter how uncomfortable it may be, the people involved have to talk. It may even help to get a professional outsider, like a financial adviser, to assist with the mediation. Below are some tips to ensure a healthy balance between love and money:
Transparency - keep the line of communication open about income and expenses.
Goals Sharing - share your goals and desires and together prioritise and work out the financial commitment for each goal.
Budget - have a joint budget which you stick to together
Regular Check-Ins - have regular check-in meetings about your finances. The check-in could focus on whether you are sticking to your budget and progress towards achieving your goals.
There is no one size fits all when it comes to balancing love and money, however it is important to have these conversations early on in the relationship before you're serious about each other and even more so before marriage. The situation will differ from one individual to another. That is why we advise that as a couple you seek professional help in managing your finances together. Speak to one of our Liberty Accredited Financial Advisers.