He loves me, he loves me not…
Turns out daisies aren’t such a great relationship predictor after all. Surprise, surprise…the amount of debt a couple has is a much stronger predictor of co-habited bliss.
Surveys tell us that one of the strengths of most happy couples is that they don't have major debt and even the smallest amount can throw a wet blanket over the good times.
How can couples find the right balance for a lifetime of financial happiness?
Here are five tips to help maintain harmony in couple-dom…whether you’re new parents, racing around with toddlers, or facing the challenge of teens!
Know your household income and expenses. A simple tactic that’s often ignored is the creation of a household budget - one of the best starting points at managing your finances. There’s nothing worse than getting to the end of the money before the end of the month when all the bills are due.
Together forever means having the talk…about money. It’s a touchy subject but a must do if you ever hope to keep financial fighting at bay. Be sure that you and your partner are a match when it comes to big (and little) purchases that end up on credit or deplete the bank balance.
Don’t learn first hand about the sticker shock of credit purchases. That ‘bargain’ you picked up in January that takes until November to pay off may cost you more than the pre-markdown price. Ouch! Better to save and buy when you have the available cash.
Already in the hole? Start by setting a realistic goal such as paying off credit cards by the end of the year or reducing debt to 20% of take home pay.
Here are other ideas to help reduce debt:
• Budget a set amount each month
• Get rid of high-interest debt first
• Consolidate different debts into one
• Set up an automatic savings plan
Start your kids’ education savings early. It’s like saving for a house or car…it takes planning and diligence but boy does it pay off in the long run.
Here’s where you and your partner can work together on the big questions:
• How long do you have to save?
• Will they live at home or away?
• Will you pay all of the cost, or will your child contribute?
• Are scholarships, grants, or financial aid available?
• What is the real cost of a post secondary education?
For more great finance tips visit GetSmarterAboutMoney.ca.
Now stop playing with the daisies and get your financial house in order!
Printer-friendly version