Talking money with a partner
Here are some factors to consider before you join finances with a partner.
While you've likely imagined what a future with your partner looks like, you may not have considered the financial implications of that future. Think: careers, kids, caring for aging parents, and even where you want to live and travel to. In reality, all these things have price tags attached.
Of course, every relationship is different and how each person approaches finances is highly personal. In any case, here are a few things to consider if you're thinking of joining finances with a partner.
Identify assets and liabilities
Start by identifying your own assets and liabilities. Assets are things you own - your investments, property, salary - and liabilities are things you owe, like rent, mortgage and student loans. Have your partner do the same so you can both be transparent about your financial situation.
Define shared goals
Just as when you're managing your personal finances and investments, it's useful to think about your long-term goals and what matters most to you both. Having shared goals can help ensure you have a coordinated approach to saving and spending, and what you need to do to reach them.
Decide if you want to join accounts
There are several ways to join finances, from combining some of your money for shared expenses to combining everything, including income and investments. There's no right one size fits all solution, but rather, it should be dependent on what you're both comfortable with. Consider keeping some financial independence and making sure there's equal control when managing money. If you're unsure what arrangement suits you best, it's always wise to consult a trusted financial adviser.
Decide on a budget
Once you understand your own financial situation, you can then decide on a budget together or at least have a rough idea of how much you can both afford to spend.
Begin by sorting your monthly spending into categories—housing, dining out, savings, etc. If you notice you're not saving as much as you'd like, you may want to cut back on your spending in other areas.
Keep in mind that you and your partner will need discipline to implement a budget and stick to it, and this may require changes or sacrifices in your everyday life. But don't be afraid to hold each other accountable. If you're trying to save but notice shopping packages piling up on your doorstep, ask each other if you're on the same page about what's needed. The conversations might get tough, but remember this should never feel like it's you versus them. You and your partner are a team working toward a goal.
Vanguard
24 May, 2022
vanguard.com.au
Latest Newsletters
Hot Issues
- Aged care report goes to the heart of Australia’s tax debate
- Removed super no longer protected from creditors: court
- ATO investigating 16.5k SMSFs over valuation compliance
- The 2025 Financial Year Tax & Super Changes You Need to Know!
- Investment and economic outlook, March 2024
- The compounding benefits from reinvesting dividends
- Three things to consider when switching your super
- Oldest Buildings in the World.
- Illegal access nets $637 million
- Trustee decisions are at their own discretion: expert
- Regular reviews and safekeeping of documents vital: expert
- Latest stats back up research into SMSF longevity and returns: educator
- Investment and economic outlook, February 2024
- Planning financially for a career break
- Could your SMSF do with more diversification?
- Countries producing the most solar power by gigawatt hours
- Labor tweaks stage 3 tax cuts to make room for ‘middle Australia’
- Quarterly reporting regime means communication now paramount: expert
- Plan now to take advantage of 5-year carry forward rule: expert
- Why investors are firmly focused on interest rates
- Super literacy low for cash-strapped
- Four timeless principles for investing success
- Investment and economic outlook, January 2024
- Wheat Production by Country
- Time to start planning for stage 3 tax cuts: technical manager
- Millions of Australians lose by leaving savings in default MySuper funds
- Vanguard economic and market outlook for 2024: A return to sound money
- An investment year of ups and downs
- How to tame the market's skewness
- The Countries that Export the Most Wine in the World
- Tips for preparing for the best tax outcomes
Article archive
- October - December 2023
- July - September 2023
- April - June 2023
- January - March 2023
- October - December 2022
- July - September 2022
- April - June 2022
- January - March 2022
- October - December 2021
- July - September 2021
- April - June 2021
- January - March 2021
- October - December 2020
- July - September 2020
- April - June 2020
- January - March 2020
- October - December 2019
- July - September 2019
- April - June 2019
- January - March 2019
- October - December 2018
- July - September 2018
- April - June 2018
- January - March 2018
- October - December 2017
- July - September 2017
- April - June 2017
- January - March 2017
- October - December 2016
- July - September 2016
- April - June 2016
- January - March 2016
- October - December 2015
- July - September 2015
- April - June 2015