How to Talk to Your Partner About Money

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How to Talk to Your Partner About Money

(DailyProsper.com) – In an ideal world, everyone would have enough work, enough money, and a good sense for smart financial management. The reality, of course, isn’t quite as rosy and lovely. Almost half of American couples report struggling with cash flow so much that it causes fights with a partner on a regular basis.

That’s a problem – and we want to help you fix it. But the only way to do that is to start having those difficult conversations about money with your loved ones. We’ll tell you how to break the ice without feeling awkward in this post.

Lay It Out on the Line

Does your partner know exactly how much money you make (and vice versa)? This is important for getting things off to a good start. Maybe you didn’t mention that you get a quarterly bonus or that your Christmas club account is price-matched by your employer. Tell your partner everything now. Lay everything out on the table and be transparent about all the money you bring home.

Create a Simple Household Budget

Once you have your finances out in the open, it’s time to see how they’ll come together. This starts with creating a reasonable household budget.

A zero-based budget may help you get more organized: Budget your income minus your expenses until they equal zero. Just make sure your expenses match your income and you give every dollar a place to go. Even if the extra money goes into savings or paying off debt, you’re dispersing it so no funds are in limbo. Talk to your partner about creating a budget together.

Run Free Credit Data

Now is the time to get to the nitty gritty of both your finances. Each of you should run a credit report check and FICO score update. This way you can see what areas need help and how they’ll affect your future. If there are issues, consider seeing a financial advisor or debt counselor to get things on track sooner rather than later.

Be Candid About Your Indulgences

Don’t be afraid to speak up and say that you have a monthly beauty kit subscription or you love to buy a new purse each season to stay fashion savvy. Share your indulgences with your partner and be real about how much you spend. You’d expect the same from them, right?

When is the best time to talk to your loved one about money? Right now. Getting your issues out in the open is the best way to learn and grow together financially. Here’s to a prosperous future together!

~Here’s to Your Success!

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