Open and Honest Communication - The Basis of Effectively Managing Your Money and Relationships

Just as your relationship cannot survive without a high level of open and honest communication, your family finances will suffer unless you and your partner are working together in an open and honest method.

It is important that you sit down with your partner and hold an open, honest, and confrontational-free conversation about where you currently stand financially. You should discuss shortfalls in your budget, and you should discuss the matter of impulse purchases that can set your household budget back significantly.

If you don’t have smooth flowing communication, your relationship is very likely going to run into several major issues. It will only build up resentment and even a large amount of anger as you watch your household budget planning efforts dissolve.

You and your partner should consider holding informal monthly household budget meetings so that both of you can ensure that you are on the same page related to your money and relationship.

Getting Your Finances Organized

An important aspect of ensuring that your household achieves financial stability and success is to keep every item related to your finances as organized as is possible. Thorough organization will help you in two different ways:

• It will help you and your partner to ensure that all of your bills are paid on time, which can also provide a positive effect on your credit rating.

• It will also help you and your partner to ensure that either one of you can step in to make decisions about your finances while having a clear idea as to where you currently stand.

If one of you is much more organized and more adept at controlling finances, consider having that person set up your financial organizational system. A home financial software package might be a good choice.

Track Your Spending

As a part of your efforts to organize your finances, you and your partner should consider tracking where your money is being spent. By tracking your money, you and your partner will be able to gain a clear idea as to where every penny is spent. This can help you to ensure that any arguments about missing money or splurge spending are kept to a minimum as each partner now has accountability for the money that they spend.

Determining the Financial Ground Rules In Your Relationship

Regardless of whether your home is a dual or a single income household, it is very important for you and your partner to work together in order to establish who will be taking on the primary responsibility for your household finances.

Ask yourself several questions before you simply assign one of you to control the money in your household.

• If you have a dual household income, will you be combining your paychecks into one joint checking account?

• If you have a dual income, will you each have your paychecks deposited into your own checking accounts?

• If so, which partner will be responsible for paying the household bills? By establishing who will be paying every single monthly bill, you will be less likely to have late fees, poor credit scores, and you can avoid the risk of losing your electricity during mid-summer.

• Will it work out better for one of you to pay the mortgage while the other pays the utilities and groceries?

• Who will make the decisions when it comes to major household expenditures? Ideally, it should be a joint decision, no matter which paycheck is funding the expense.

Consider opening up a checking account that is purely for household expenses. Each partner could contribute an agreed upon amount of money into it each month in order to ensure that all of the household expenses are being taken care it. From this fund, other unexpected expenses like the need to pay for a plumber or electrician could be handled without the need to scramble for the money.

Making Money Decisions In Your Relationship

To find harmony between the matters of money and relationships, couples should make spending decisions together – as true partners in the relationship.

This does not mean that you need to consult your partner every time that you need to swing by the grocery store or pick up a new pair of running shoes. Expenses like clothing and groceries should be discussed during your monthly budget meetings; so long as you are spending within your budget and your allotted monthly allowance for those items, there should be no problem.

However, if you wish to purchase a new mobile phone, computer, or even a car, you should definitely run these expenses past your partner. This conversation is important so that both people in the relationship agree that the item is within the budget. However, there is another valuable benefit.

Discussing these types of large expenses might provide you with an insight from your partner, an insight that could help you to save a bit of money. For example, if your mobile phone contract ends in two months, your partner might suggest that it makes better financial sense to wait out the two months before purchasing a new mobile phone at the full price. Waiting until your mobile phone provider offers you a steep discount on your new phone is a much better option. Work with your partner, as a team, in order to find the best deals on items and policies that will affect both of you.

Money and Relationships - The Results

With your money and relationship issues on track, your home will be a much more pleasant environment to return to at the end of the day! Not only will your financial situation be in much better shape, but your relationship will be even stronger once you have successfully leapt over the hurdle that dealing with money in relationships often presents.

Share Your Story - Money and Relationships

How have you worked with your partner to improve your household finances?

Do you have any other advice for newlyweds on how to handle their new shared financial situation?