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Are you and your significant other making these common financial mistakes?
Check out today’s contributed post to know for sure. Enjoy!
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Many people believe that moving in with their partner will make their life a whole lot easier, especially when it comes to financial obligations.
Living with someone gives you the chance to share all your bills, so you should find that your cost of living reduces slightly.
Not only that, though, but you have someone special who you can chat to about money and make big financial decisions with. It will be like someone has taken a weight off your shoulders!
However, bringing two people’s finances together isn’t always that easy. You might actually find that money is something that you commonly argue over.
To make sure that this doesn’t put too much of a strain on your relationship, here are some common financial mistakes that couples can easily make.
Make sure you don’t do any of the following.
Closing Your Own Bank Account
It makes sense for a couple to open a joint bank account together.
However, it’s still a good idea to hold onto your own bank account as well. Closing your own bank account is one of the most common financial mistakes couples make.
That’s because all the cash that is in the joint account will be seen as shared between the two of you.
If you were to split up, then the money would be shared fifty-fifty, even if you have paid more into it over time.
So, set aside some of your own money in your own account just in case the worst-case scenario were to occur.
Related: Money Mistakes To Avoid In 2019
Not Sharing The Financial Responsibility
Now that you both live together, you are both equally responsible for the household’s finances.
And this means that you will need to manage the cash together.
It isn’t fair if one of you is forced to take over all of the bills and general financial responsibility on your own.
So, make sure both of you discuss decisions together and that each of you pay your way fairly when it comes to bills and household expenses.
Related: Couples Money: How To Handle Finances In A Relationship
Forgetting About Retirement
You also need to remember retirement. Some couples think that they can put this off until later in life but, truth be told, it is never too early to start saving and planning for retirement.
If neither of you has a pension, you should each set one up as soon as possible. It’s also wise to open an extra savings accounts so that you have some dedicated savings for your later years.
If you plan on having children, you might also want to think about taking out some life insurance so that you are both covered.
Related: Saving For Retirement: 2019 FAQ Guide
Not Talking About Finances
I’m sure that most couples are happy to discuss a range of topics with each other, but there are still some out there who find it hard to discuss their joint finances.
You both need to be open and honest with one another so that you are both there to work through things if times ever get tough.
You should also be honest with each other when it comes to debt as taking out a loan when you have a joint account could impact the other’s credit rating.
Don’t make these common financial mistakes!
Related: Money Problems: How To Help Your Partner Through Financial Crisis
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