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If you are going to be successful and achieve your financial goals you will need to face up to obstacles head on rather than wait and hope that they disappear of their own accord; usually, they do not disappear of their own accord. Are you financially compatible with your partner?
First of all, a quick definition, when I use the use the term financially compatible, I mean to share the same financial goals, vision and habits. Are you both saving regularly and maximising investment returns? Is your discretionary expenditure linked to value for money? I do not mean that you need to be earning the same salary. It is great if you are but it is not essential for financial compatibility. The key word in this context is together, ideally you need to be able to plan your financial future together and work towards it. This could mean saving to buy a home, a goal of becoming debt free or financial freedom (retirement) at an early age.
Financial literacy is not a skill-set everyone has, some are willing to learn whereas others are more interested in living for the moment instead of having a financial plan. Not everyone approaches personal finance and their financial responsibilities in the same way.
Are You Financially Compatible?
Disagreements over money remains one of most common causes of divorce. If one person is a disciplined, lifelong saver and the other is frivolous with money, there will be friction between the two. In my opinion, if these differences are entrenched there is no chance of achieving your financial goals together. It does not seem very romantic to consider a partner’s financial compatibility when you are just getting to know them but if you don’t, you could be storing up problems for yourself later on. Hopefully, if you are in a relationship you have already taken an opportunity to discuss money with your partner.
Depending on your starting point, following a budget for a prolonged period can be hard work. To achieve financial freedom for example, you and your partner will need to work as a team and to be consistent. You need to be in alignment.
Create a Financial Plan Together
If there are only slight differences between you then thankfully, with a calm approach, compromises can be agreed upon.
If that is the case, the following steps will help:
- Arrange to have regular money meetings with your partner; during these meetings discuss financial goals and budgeting and agree a way forward.
- If one of you is the natural saver, take the lead in these meetings but be careful to avoid being judgemental.
- Build in quick wins on your financial journey together, this could be paying off a credit card with a low balance or saving for a planned weekend away.
- Allow yourself small celebrations when you hit your financial milestones, be creative with these and do not spend a lot of money on them.
By working together you will dramatically improve your financial health and you will strengthen your relationship. Well done! Your future is looking bright.
Have you sat down with your partner and discussed finances? How did the conversation go? Let me know in the comments section below.
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My aim with each blog post is to help you move to a better financial future. I believe that there is not enough financial education in the national curriculum and I intend to share anything helpful that I have learned along the way. I am by no means a financial expert. None of the information on this website constitutes financial advice and is provided as general information only. This is my personal finance blog; my marketing blog is over here and I have been blogging there since 2010. I hope you have found this information useful. Thank you for reading.
Best regards,
Mike
