A penny for your partner’s thoughts
The impact of Covid-19 is not only being felt by couples physically and emotionally, but also financially. After nearly a year of dealing with the virus, personal finance website JustMoney gives tips money management, saving, and budgeting for couples.
Whether you are already in a marriage or considering a commitment, it is more important than ever to discuss and understand each other’s views about money.
“Taking the time to understand how you each approach your finances, and how to navigate a better way forward, can pave the way for a happier relationship and home life,” says Shafeeka Anthony, marketing manager of personal finance website JustMoney.
Couples and cash
In many relationships there is a spender and a saver. There is often one party who runs out of money first, and who does not stick to the budget.
“It is important to remember that, no matter how much you have in common, your partner’s attitude to managing money may differ greatly from your own. This is shaped from a young age and is difficult to change. No one approach is necessarily right,” says Anthony.
Money personalities
The way that people manage their money is highly personal. Big spenders enjoy brand names and the latest gadgets, and are likely to take greater risks when investing.
Savers, on the other hand, read through newspaper inserts for bargains, turn off the lights when leaving a room, and are risk-averse when it comes to investing.
Shoppers get emotional satisfaction from spending up a storm, and can easily go overboard on credit. When financial opposites attract, it can lead to fireworks. Arguments about money can quickly become intense.
It’s easy to feel criticised, even if your partner’s comments are well meant.
Counting on credit
Couples considering borrowing would do well by consulting their credit scores first. This is a tool that lenders use to decide whether an individual is a low or high-risk borrower.
When you apply for a loan or credit, the bank or lender first checks your score and accompanying report. Your credit score not only determines whether you will receive the loan or credit, but also the interest rate you will be charged.
“Knowing your credit score is extremely helpful if, for example, you are a young couple and want to find out whether your dream of buying a home can become a reality,” says Anthony.
Debt stress
Reducing the stress as a couple can be helped along with some basic tips to achieve financial success. One of these is avoiding bad debt or, if you are already in a debt pit, tackling the issue proactively.
If more than a third of your income goes towards paying your debt, and you are worried and stressed, it is best to seek help straight away. One option is debt consolidation, which combines a number of individual debts into a single debt.
This can mean, for example, increasing your home loan and using the extra cash to pay off all your loans at a lower interest rate.
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Couple and family finances
When you both agree on your money goals, it’s a good idea to work out a household budget together. Another helpful tip is to have a regular financial check-in.
This need not be a long and serious discussion, just a chat over a coffee or glass of wine will ensure you’re heading in the right direction.
Whatever means you use to find and maintain your financial harmony, communication is key.
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More about JustMoney
The JustMoney website offers many helpful articles and tools relating to financial wellness. It covers credit and debt best practice, insurance, banking, tax and many other topics.
JustMoney understands that managing finances can be stressful, so has made the process easy, fast, safe and convenient. It partners with trusted financial brands and creates informative, trustworthy advice for busy people. Investments and loans are also available at competitive rates.
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Source: Meropa Communications
