This Valentines’ Day, Discuss Finances with Your Partner Too

Jun 20, 2018 | 7 months ago | Read Time: 3 minutes | By iKnowledge Team

You may have heard of emotional compatibility, but did you know that financial compatibility is a thing too? Keeping financial secrets from your significant other may not bode well for you in the long run. It is important to discuss current finances, investment plans, and debt, as well as future financial goals to stay on the same page. If you avoid it, it may lead to problems in your relationship later. So, this Valentine’s Day, make it a point to discuss finances with your partner. Here are some things you can discuss or improve upon:

Outstanding credit

Make sure you take up credit card debt, loans or outstanding EMIs so that you are both on the same page regarding your financial situation. If one of you is on shaky ground, the other can help stabilize or bring discipline in the other. Know each other’s liabilities, as it will help in planning your future, keeping everything else in mind.

Financial commitments

If you have any financial commitments, like supporting your parents or sibling’s education, make sure you exchange views on it beforehand. If a portion of your income is to be set aside for your parents or sibling, let your partner know of it. Put aside a part of your savings for any medical emergencies for your parents/ sibling. If you are planning to study further, let your partner know that you are saving a part of your income for your education.

Savings plans

Your partner should be aware of your savings plans and the mode of savings. For instance, you may have your savings in an FD. Your partner may have put their savings in a high-interest savings account. You may choose different methods to save. If your partner is lax on saving, encourage them and ensure save a little each month for the future.

Insurance plans

It is a good idea to discuss one another’s insurance plans. Your spouse may want to invest in a joint insurance plan or upgrade plans as per your growing needs. Keep each other informed of your insurance requirements and options.

Investment options

Investing in mutual funds? Keep your spouse in the loop of your investments and its impact in the long term. You may prefer a different investment option, like stocks, while your spouse may prefer FDs or plans with assured returns. That’s okay, as long as you let each other know and balance each other’s finances out. If you want to invest in something jointly, discuss it with your partner and check their comfort levels.

Retirement corpus

Irrespective of who retires first, you must ensure that you talk about your retirement plans. As long as you are saving enough for your retirement, it is okay to have separate investment options in your retirement portfolio. Retirement needs may differ or one of you may have to invest a little more to compensate for the other person. However, encourage your spouse to build their retirement corpus and if you can, save for them as well.

Joint financial plans

Your spouse may be open to investing in something together but may want to keep some things separate. For instance, your spouse want to buy a property together but may not be comfortable in having a joint account. It is essential to have open lines of communication with your spouse and ensure no problems crop up at a later stage.

To sum up

Having different financial goals is all right as long you keep each other in the loop. Stable and secure finances play a vital part in maintaining a healthy relationship. Ensure you discuss and communicate money matters for a steady relationship.

Advt. no.: IA/May 2018/4044


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