Money is the root of all evil. Is it wise for you to manage your finances in one joint account with your partner? Most married couples who have tried this method, end up regretting due to lack of trust and poor spending habits. We are all working hard to have a brighter future, and when it finally comes, we are left with the dilemma of sharing our bank accounts with our spouses.
A survey conducted in America, reports that couples find managing finances more stressful when they are doing it jointly than separately. The biggest mistake that most people do while managing joint accounts is not realizing the need for a personal financial advisor. Below is a discussion regarding how to manage your finances without constant fights in a relationship.
Managing a joint account
Assess and test first
A joint account is a big decision that requires serious commitment. Before you deposit all your savings, open a joint account that does not have an overdraft and use it to test how committed you both are. Encourage your partner to deposit some amount every month as you do the same. Once it accumulates, withdraw funds from both sides and spend it on family needs with the knowledge of your partner. If everything is working as planned, you can now decide to take it to the next level by contributing regularly to your joint account.
Learn how to trust each other and be fair
Opening a joint account should be built on complete trust on a partner. Your relationship should be stable enough for you to trust your partner with your money completely. Remember that this kind of account gives both partners responsibility for any types of debts and overdrafts. This means that both of you are liable to settle loans that you take and pay interests as expected. Each partner should reasonably contribute towards resolving debts without waiting for the other to pay more than them.
Both of you should come up with boundaries and stick to them
Avoid arguments and unnecessary fights regarding money by setting boundaries on your joint account. Set a limit to which each partner should spend so that you can regulate a poor attitude towards money. For instance, many women who share joint accounts with their husbands like overspending on shopping when they are no limits set. Come up with a policy such as seeking approval if you want to spend on a luxurious item before deciding on your own.
Some men, on the other hand, may use money from a joint account on drugs if they have drug problems. Drugs such as Suboxone are expensive and may strain your joint account. Encourage such a partner to get help from Suboxone rehabs to break drug tolerance. You can also attend family therapy to mend your relationship and find better ways of managing your finances to avoid money quarrels.
Your wife may not understand much about managing a joint account. Do not take advantage of this but make them equal partners of the account. This prevents arguments when a partner does not know the terms and conditions of the account. Equal shares also help you plan for uncertainties as it prepares each partner in cases of emergencies to know what to do.
Talk about financial issues
Open communication about how to manage the finances of the family creates harmony. No partner will feel that they are left out, or that the other is doing things behind their back. Make it a habit of sharing ideas regarding future changes. Such regular talks help you come up with a backup plan in case something unexpected comes up. It also enables both members to develop an interest in managing the family finances so that you can decide how to spend your money as a team.
Get support from advisors
People who have trouble settling debts due to inconsistent partners should seek help from financial and mortgage counselors. Sometimes, people face financial difficulties due to emergencies as well as poor decision making. Such support helps you find ways of settling the debts without accumulating more interest.
Managing accounts separately
Be honest about your financial status
Men sometimes lie about their economic situation so that they are not judged by women they may like. Some lie as a way of protecting themselves from gold diggers. Even if you decide to keep your separate account, being realistic about how much you can afford will help your family live within your means. Being a couple means opening up to your loved one so that together you can know how debts and loans may affect your relationship. It also makes you come up with financial goals as you work together to achieve them.
Learn to divide the bills and share responsibilities
Shared responsibilities prevent burdening one partner. Even if you are earning less than them, talk to your spouse and decide what percentage each of you will contribute towards family bills and other expenses. Plan for all costs including miscellaneous expenses together even if each is managing a separate account.
Have your partner in mind
You should always consider your partner as you spend your finances from a different account. It may be your money but remember you still have to share what you have towards the needs of your family. Do not, therefore, overspend and forget that you may be in charge of food while he pays school fees for the kids.
A partner who may be earning much more than the other can support them by depositing a specific allowance every month in their accounts. This method helps one feel appreciated and helps both of you manage finances well. The less earning partner can use this support to settle regular household expenses without wasting it on poor spending habits. It may also boost the morale of a partner who may have lost their job or having hardships with their business.
Among the many issues that a couple may go through, money management should not be part of them. Do not let finances come in the way of your relationship. The strategies outlined above will help you whether you hold a separate or joint account. Keep in mind that communicating with your partner about everything will save your relationship.
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