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Love is in the air, and many people are finding themselves in new relationships after 50. It’s a great time to find love, but it can also be tricky to handle your finances when you’re just starting out. This can especially be difficult if one person is used to handling the money and the other isn’t. In this blog post, we’ll discuss how to budget and handle your finances when you’re in a new relationship. We’ll also offer some tips for avoiding any finance-related arguments!
Understand your partner’s financial situation and goals
The first step to handling your finances when you’re in a new relationship is to understand your partner’s financial situation and goals. What are their monthly expenses? Do they have any debt? What are their savings goals? By understanding their financial picture, you can start to develop a plan for how to best manage your money as a couple.
If one partner is carrying more debt than the other, it may make sense for them to focus on paying that off first. Or, if one person has a higher income than the other, they may be able to contribute more towards shared expenses. Understanding each other’s financial situations will help you make informed decisions about how to best handle your money as a couple.
This Direct Lender reports that “About four in ten Americans say they have combined all of their finances with their partner, while an additional one-third say they have some joint accounts but also maintain separate accounts.”
Discuss your spending and saving habits
After you’ve taken a look at your financial situation, it’s time to discuss your spending and saving habits. Do you like to save money or do you tend to spend it as soon as you get it? What are your thoughts on investing? These are all important questions to ask when you’re trying to develop a financial plan as a couple.
You may find that you and your partner have different spending habits. One person may be more impulsive with their money while the other is more mindful about their purchases. It’s important to discuss these differences and come up with a plan that works for both of you. Perhaps you can agree to set aside a certain amount of money each month that can be used for “fun” purchases. Or, you may decide to open joint savings account that you both contribute to.
Agree on financial responsibilities, such as paying bills and contributing to household expenses
Another important step in handling your finances when you’re in a new relationship is to agree on financial responsibilities. Who will be responsible for paying the bills? How will you contribute to household expenses? Will you have joint accounts or separate accounts?
It’s important to sit down and discuss these things before any money problems arise. By agreeing on financial responsibilities ahead of time, you can avoid arguments down the road. Plus, it will help keep your finances organized and streamlined.
Make a plan for retirement savings and investing
Retirement may seem like a long way off, but it’s never too early to start planning for it. If you’re in a new relationship, now is the perfect time to start thinking about your retirement savings and investing goals. Do you want to retire at the same time? How much money do you want to have saved? What kind of lifestyle do you want in retirement?
These are all important questions to ask when you’re developing a financial plan as a couple. By making a plan for retirement now, you can ensure that you’re on the same page about your future finances. Plus, it will give you plenty of time to save up and invest for your future together.
Algernon Ronson of Oak Park Financial explains that “retirement is one of the most important financial goals to discuss as a couple because it will have a major impact on your lifestyle and future finances.”
Protect yourselves financially in case of a breakup or death
No one likes to think about the possibility of a breakup or death, but it’s important to protect yourself financially in case of either one. If you’re in a new relationship, now is the time to start thinking about things like life insurance and wills.
By putting these things in place, you can ensure that you and your partner are taken care of financially if something happens. Plus, it will give you peace of mind knowing that you’re prepared for anything that may come your way.
