The management of revenue, expenses and investments in a marriage, formal partner or for two people who share a life project is one of the biggest challenges of personal and family finance.
How emotional, behavioral and belief aspects of money and shared goals are involved.
6 principles can help you make decisions on this vital topic
1- Keep an open communication on economic and money issuesIn many relationships talk about money is almost a taboo and an uncomfortable theme, it is necessary to break with this dynamic and establish at least one day a month to review the accounts, make the budget, and talk assertively and responsibly about money, without affecting other topics of the couple.2- Principle of proportionality income- expenditureThis pillar is based on the concept of maintaining a balance between the income of each person and the common expenses or commitments assumed, for example, if you have revenues equivalent to double that of the other member of the couple, then keep that same proportionality at the expense.
Otherwise, one of the members of the couple may feel that their commitments exceed their financial capacity, if, at some point, the ratio of revenues changes, then one can rebalance the expenses incurred.
3 Set common short, medium and long-term goalsSmart couples grow together financially, must unify goals and criteria for where to go, if they have very different goals and visions, it will be complex to row to the same place.
4-1997, point 1.4.14 Preserving the level of financial independenceWhile maintaining joint accounts and common expenses, each must preserve a certain degree of financial independence over their revenues, so they will feel better, and can make very personal expenses, without violating agreed basic rules.
5 Development of a joint saving strategyEstablishing a joint monthly savings goal mutually, couples should avoid dissimulating expenses or egreses that break the established plans, and remember to consider a family emergency fund in USD.
6- Adopt insurance and investment plans together or separately if the risk profile is differentIt is necessary to have a life insurance and a private retirement plan, which familyly protect children or the spouse who would be only unforeseen, death, job losses, accidents or negative situations.
In this matter, they can save costs with man-made policies, but if the risk profile and investment strategy is very different between each one, it is better that each person has his own life and retirement policy or his portfolio.
I hope these ideas serve as the basis for improving communication and positively talking about the finances between the partners and contributing to the achievement of their financial goals.
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