Are You Financially Compatible With Your Partner?
The wedding season is in full swing. Indian marriages are not just the marriage of two individuals but the entire family. While we tend to focus on the annual package and family’s financial situation, financial compatibility takes the backseat.
Financial compatibility, just like emotional compatibility, can help couples to live a fulfilling life with each other. Financial compatibility does not mean that both partners should have equal bank balance, but it is about how they see money and what money means to them. To understand financial compatibility, one needs to know the other’s attitude towards money. Some of the basic questions can be framed around outstanding debt, savings and spending habits.
Having a common point of view on money can help to keep money related issues at bay. After all, majority of fights after marriage tends to revolve around money.
However, no two people can be alike. Even though, financial compatibility in your relationship may not be great, you should not lose heart. Financial compatibility can be enhanced by following certain steps which will also deepen the bond with your partner.
Know what money means to your partner
The value or attitude of money differs from person to person. Hence, it is important to know what money means to your partner. While some people love to spend money on goods that bring instant gratification, others may want to keep it safely for emergencies and other purposes. It is easy to blame the other person for not sharing the same attitude on money, but the key lies in understanding the reason or factors behind their mindset. Some of the factors may include their family’s financial background and their spending habits.
Have conversations around money
After both the partners are aware of what money means to them, the next step would be to make money a regular topic of conversations. Communication is the key to any successful marriage. Income, spending pattern, saving and investing are some of the topics that can be included in these conversations. Maintaining a budget is a cornerstone to keep the finances in place. As the budget will include spending on necessary and luxury items along with investments, it becomes important to dedicate a certain percentage of the income to these aspects. It may require tracking bank accounts and money spent under various heads.
Couples can schedule a day every month on a weekend to go over the bank accounts to understand and fix the problem areas.
Arrive at a common ground
While going through the bank statements or the money manager apps, it is most likely that one person will not be happy with the way the other person is spending money or the other person may feel that their partner is saving and investing more money than required.
In this scenario, both the partners should arrive at a consensus i.e. a middle ground when it comes to spending and saving money. If you are unable to arrive at a common ground, you can take the help of a common friend or a financial advisor.
Write it down on a notebook so that it is easy for both of you to consult it later.
Make the other person accountable
After you and your partner arrive at a middle ground, it is important to keep your partner accountable. It will ensure that both of you are on the right track. The common ground will act as a yardstick. Tracking expenses and proper communication plays an important role in this aspect.
Conclusion: Don’t let financial incompatibility ruin your relationship. Understanding how your partner sees money, having proper communication around money, coming to a middle ground and making each other accountable for the decisions are some of the ways that can help to increase financial compatibility.
Mutual Fund investments are subject to market risk. Please read the offer document carefully before investing' says the disclaimer in the every advertisement of the mutual fund.
© Finmonks Financial Studio LLP. All rights reserved. | Designed & Developed By : www.anchoredge.in