Financial Planning For Couples
When two people join their lives together, it can get a whole lot more complicated than simple biology. While we don’t want to discount the importance of that, the devil is truly in the details. If you haven’t done your homework and proper planning, this can quickly throw a wrench in our plans for everlasting romantic bliss.
Every couple should have a financial plan in place to protect them today, to prepare for tomorrow, and to respond when life’s unexpected circumstances arise. A financial plan should put you and your significant other at the forefront and account for current and ongoing needs as you grow together.
Whether you’re a young couple, engaged to be married, newlyweds, or long-time partners, all couples have important factors to consider that can affect their financial future. Fortunately, the team at MyFuture is well-versed in developing concrete financial plans and helping couples implement them to provide you both comfort and security long into the future.
Setting Financial Goals For Couples
We know that couples come in all shapes and sizes, and just like people, no two couples are alike. There is a whole world of considerations to take into account when making a financial plan as a couple. Unfortunately, while we would love for it to be the case, no couple starts a relationship by making a financial plan together. But at least you can take comfort in the fact that you’re not alone in this boat!
Money can be a complicated and often sensitive topic in a relationship. Many people are uncomfortable even acknowledging their own financial situation, let alone discussing it with someone else. Nevertheless, being honest with your partner about money is a big player in the foundation of trust in any relationship. Couples that have these sometimes difficult conversations about their finances can strengthen their relationship and set them up for a lifetime of successful teamwork.
Beyond initial conversations about each partner’s current financial status and any financial or other plans they may have, there are other factors to keep in mind when making a financial plan that suits you both:
- What are your sources of income?
- What assets do you each have?
- Do you plan to have joint accounts or separate accounts?
- Do you plan to join households or live separately?
- Do either of you have any debts or liabilities?
- Do you plan to have children or not?
- Do you have any health issues?
- Do you have ideas about how, when, and where you want to retire?
These are just a few considerations to get you thinking about your financial goals as a couple, but the team at MyFuture will guide you through the process of crafting a financial plan that puts your needs first.
While it’s true that, generally speaking, getting married makes financial sense, it still needs to make sense – and cents – for you both.
What Is The Best Way For Married Couples To Handle Finances?
The truth is, there is no single ‘best way’ for married couples to handle their finances since everyone’s circumstances differ based on a number of factors. The key is to find the best way for you and that won’t be the same from one couple to the next. A good starting point is identifying your individual goals, as well as your goals as a couple, and implementing strategies based on those goals. Whether you manage your money in separate accounts, a joint account, or a combination of the two it’s important to find a balance that suits you both.
Separate Accounts
At the beginning of any relationship, separate accounts might be a comfortable starting point, especially as you’re both likely accustomed to managing your own finances and won’t have many shared expenses. If you decide to move in together, there may be income differentials or even debt that’s brought into the equation from one or both sides. A separate accounting system can help clarify income disparities, debts, and even spender-versus-saver personality conflicts. You may find that continuing with separate accounts enables more communication, freedom, and autonomy between you.
Joint Accounts
If you wish to simplify your financial management, a joint account may be the answer. Joint accounts can make tracking documents, budgets, and spending easier. There are a number of apps you can use to help delineate your accounting should the need arise, but your finances would be simplified with a joint account where expenses could be paid from a single account.
Separate and Joint Accounts
Although this scenario may seem more complicated, you may find it’s the best solution for you both. With a joint account you can pay your family expenses more easily while setting aside a personal budget in separate accounts for you both to have the freedom to spend on what’s important to you without complicating your family accounting.
Using a combination of joint and separate accounts may mean you maintain your personal account, but both pay in set amounts to the joint account while you work together towards joint goals or your dream retirement. Similarly, you can keep investments and debts either separate or joint depending on your goals, needs, and preferences.
Get Ahead With Quality Financial Advice
Our Qualified Financial Advisers can help you achieve your wealth creation and savings goals with a tailored financial plan and proven financial expertise.
What Are Financial Goals For A Couple?
Creating financial goals together that align as a couple is integral to your individual and shared financial independence and freedom. Like most aspects of a relationship, compromise may play a role, but it’s also important to express your individual goals to identify where they coincide and where they diverge.
By discussing your priorities as a couple, you’ll be able to develop a financial plan that gets you both going in the right direction, as well as working towards your goals as a couple at the same time.
At MyFuture, we have a wealth of experience in finding the right balance for financial planning for couples and helping you both to identify and reach your financial goals.
Get in touch with us today for your FREE no obligation Discovery Session to find out more about our financial advice for couples.
What is our 6-Step Financial Advice Process?
The 6-step financial advice process is the international benchmark for financial planning. This holistic approach is proven to increase the likelihood of you achieving your financial goals.
Discovery Session
This is our opportunity to get to know you better, understand your financial goals (short, medium and long-term), and what resources you have to achieve those goals.
Research & Recommendations
During these steps, we do the research, run the numbers, document and present our recommendations to you. This can be a comprehensive financial plan focused on long-term wealth creation and/or a statement of advice focused on your more immediate financial needs. We will need to verify the information you provided during the Discovery Session by requesting supporting documents such as loan and savings account balances, payslips, etc. This ensures we are using highly accurate information when developing our recommendations.
Implementation
This step is all about implementing the recommendations. We don’t just provide the recommendation; we take responsibility for helping you implement it. This could involve helping you to complete application forms, working with a broker to restructure your lending, or finding you suitable investments. We understand you’re busy, so our goal is to make your financial world as easy as possible by doing as much as we can in-house for you. However, ultimately, we never have access to your money and cannot sign anything on your behalf, so you need to be an active, willing, and ideally enthusiastic participant in this process.
Ongoing Service & Reviews
This is where the real fun begins—managing and tracking your long-term financial success. We have periodic reviews to ensure your strategy is still appropriate if your goals or circumstances have changed. We adjust when necessary and provide annual snapshots so you can see your progress over time. Most importantly, you have your very own trusted Personal Financial Adviser available anytime to help with the little or big stuff. Worried about making next month’s mortgage repayments? Call us. Your parents gave you an early inheritance? Call us. Broke up with your partner and split all your assets? Call us! We’re here for you every step of the way to ensure that whatever life throws at you, you stay on track with your long-term financial goals.
Frequently Asked Questions