Are you and your partner financially compatible? Financial management is one of the important discussions for couples when trying to establish a future together. Whether you’ve been in a relationship for a few months or even years, talking about money is very important. It helps you to know whether you are on the same page and gives you confidence that you can secure a strong financial future with your partner.
We understand that talking about money is not fun. It can be so uncomfortable and hard to begin with. But discussing this earlier in the relationship helps you to be better at managing debt and setting financial goals together. Wondering where to start this conversation? Begin with these 5 questions.
Knowing your partner’s credit score is important. If he can allow lenders, employers and landlords to check his score, you should be able to do it too. Furthermore, if you are planning a future together then the money chat is inevitable. You need to know each other’s scores by doing a simple request at TransUnion or Equifax. Request for a copy of the credit report so that you can review term and ensure there’s no misinformation that could damage your rating.
It’s important to know how much debt your partner has. Understanding what kind of debts each one of you is in will help you to plan on being debt-free. If it’s credit card debt or student loans, you need to work out ways to clear them by cutting back on spending. Write down all the outstanding debts and discuss the forms of debt relief Richmond Hill that can help you get out of debt faster. You’ll need to clear debts in order to start saving for the future.
It’s important to also know how much your partner earns. It will help you to figure out how much money you have to work with every month. Knowing your partner’s total income also helps to build a realistic budget and set financial goals. Remember to include all sources of income not just the paychecks. The retirement income, wages and investment gains are also part of earnings.
It is important to understand how your partner will contribute to your household’s financial decisions. Will he/she be the one to budget or pay bills? You need to consider the strengths of each party. For instance, the one who brings in the most money and has minimal debts can take up the most bills. The other can focus on saving and investing. You may also consider debt consolidation Richmond Hill to clear what you owe faster and start saving for the future.
It is important to understand your partner’s financial goals. If possible, set financial goals together. For instance, if you would want to save in order to invest in real estate, you need to discuss how you will achieve those goals and start working towards that. Figure out what needs to be done to reach your financial goals.