Money is a common cause of stress in many relationships, and if it is left unaddressed, it can negatively impact more than just wallets. It is important for couples to work towards financial transparency to minimise financial disagreements.

South Africans have different financial priorities that vary from taking care of elderly parents, paying off student debt, saving for a dream holiday, or contributing towards a younger sibling’s education.

Whatever an individual’s goals are, it is important for couples to be open about each other’s goals and compromise to develop a financial plan that accommodates their needs.

“A good place to start is establishing your financial values as a couple so that you develop alignment for  needs and wants, as well as spending priorities in your household”, says James Williams, Head of Marketing at short-term lender Wonga.

“Each couple is different, and there is no one size fits all approach, but creating a good budget that can cater for bills, savings, a personal allowance, rainy days, and an emergency fund can help avoid money fights,” says Williams.

If you have not yet started syncing your financial goals with your partner, Williams shares steps on how you can get started.

Talk about it

Be honest about where you stand financially, and discuss your attitude towards money and your financial habits. This conversation is important to allow both parties to be aware of what they are getting into.

Set short and long term priorities

In the spirit of a new start, do a financial vision board with your couple goals for the year. This will make saving easier too because you both will know what you are saving for, whether buying your first home, funding your dream vacation, or starting a side hustle together.

Know your worth

Discuss your income and review your financial statements for your savings and current accounts, debt, bond repayments, or other assets you own. Subtract your debt from the value of your assets and investments to determine your individual net worth; this will indicate  your financial health.

Try joint budgeting

Draft a simple joint budget that you can refine and work on together. Start by adding up the income the two of you can expect each month after deductions. Make a separate column with all your expenses and other spending money you will both need for daily activities. Subtract your monthly expenses from your monthly income, then see how much you are left with. If you need help creating and managing a monthly budget, use the Wonga Money Academy - it has a step by step guide on how you can create a realistic budget.

Be accountable

Decide who will be responsible for bookkeeping so that all bills get paid on time. Make sure that the non-bookkeeping partner is kept informed about what is going on and that they have a voice to flag anything they might feel is not aligned with your master plan.

During this process avoid being judgmental as you gather the facts, and remember that you are a team, you each have your strengths and weaknesses.

“It is a new year, and if your focus is building a better financial profile for you and your partner, these steps might help you get to your end goal by the end of the year. Start now, invest in understanding financial literacy better together, and reward yourselves when you reach certain milestones,” Williams concludes. 

Image source: www.wonga.co.za