It’s all very romantic until you find out he has $70K in credit card debt.
You met someone you really like. Cool!
You have been together a while and you are ready to take it to the next level. Sweet!
You are going to be living together, so it’s time to blend your finances. Hold on there, sister.
Partnership can be a wonderful, fulfilling and magical experience. It also comes with a lot of logistical and not very sexy conversations that you HAVE to have so you don’t completely destroy each other, and one of those is about money. Here are a few topics that you should approach to make sure you are both on the same page, monetarily speaking:
Your income and debts: This is probably the hardest one. You may have internalized some guilt or shame about your earning ability or spending habits and it’s going to be hard to say it out loud.
Attitude about money: Does a dollar burn a hole in your pocket? Do you treat yourself at every opportunity? Or maybe you can squeeze two pennies and make Lincoln fart. Opposite attitudes about saving and spending will be difficult to overcome, but knowing what you're up against gives you a fighting chance.
Goals: Are you saving for something special, like a trip or a vehicle? Paying down debt? Maybe saving for retirement? It’s good for each of you to know what the other has planned for the financial future.
Property / assets: If you are unmarried and paying towards the mortgage, you should know exactly what your rights are or are not with regard to that property. For the most part, it’s just paying “rent” to your partner and you have ZERO claim if you break up. Do your research so you know what to expect.
While all of these areas apply to any couple considering blending their households and finances, special rules apply once you’ve made it legal. Make sure you are very familiar with the laws in your state Money is a very touchy and emotional topic. Check in often to make sure you are on the same page and remember: honesty is the best policy and absolute transparency is the only way to go. Would you like help navigating your personal finances either alone OR with a partner? Go to linktr.ee/missoulabookkeeper for more information.
