When it comes to money, few couples are perfect soul mates. <\/p>\n\n\n\n
In your relationship, is one person a saver and the other a spender? Is one of you more conservative and the other a risk-taker? <\/p>\n\n\n\n
Conversations about money can easily turn into arguments, but it doesn\u2019t have to be that way. Together, you can create a system<\/a> for handling finances that will make you both happy. Here\u2019s how.<\/p>\n\n\n\n See how Quicken helps you stay on budget together. There\u2019s room for more than one attitude about money in a relationship. Recognize that both of your viewpoints are valid. You don\u2019t have to see eye-to-eye on everything, but it\u2019s essential to respect your partner\u2019s feelings about money. Otherwise, you won\u2019t be able to come up with a plan you\u2019re both comfortable with.<\/p>\n\n\n\n If the saver\u2019s happiness depends on feeling financially secure<\/a> and the spender\u2019s happiness depends on feeling free to enjoy life, earmark some money every month for both savings and fun purchases. Establish common ground by identifying the important financial goals you can agree on: funding retirement, paying for college, taking an annual vacation, etc.<\/p>\n\n\n\n No matter how close you are, allow some space for individual independence. Have a little money you can spend or save \u2014 without consulting each other. It may be good for each of you to have one account in your own name, even if you maintain joint checking and savings accounts for household expenses, and for long-term goals like retirement and college.<\/p>\n\n\n\n It\u2019s also prudent for each of you to establish your own credit record<\/a>; otherwise, you may find it difficult to borrow independently. So keep one credit card that\u2019s in your name only, even if you use a joint credit card for your household purchases.<\/p>\n\n\n\n Find a system for paying bills that feels fair to both of you. Some couples pay their household bills from a joint account to which both partners contribute. Others divide the bills, with each partner paying their share from their individual accounts.<\/p>\n\n\n\n It\u2019s also important to make sure the division of bills is fair and equitable for both partners. For example, if one of you earns $75,000 a year and the other earns $25,000, consider dividing your shared expenses proportionately. The one who makes three-fourths of the household income can pay for three-fourths of the bills, and the one who makes one-fourth of the income can pay one-fourth of the bills.<\/p>\n\n\n\n If that feels like it\u2019s getting too into the weeds, having a joint account might be a better bet for you. Once you decide how much you\u2019ll each contribute to your joint account every month, you can put your bills on autopilot so it isn\u2019t a constant source of friction.<\/p>\n\n\n\n If you and your partner each have a workplace retirement savings plan, sit down together and decide on a portfolio mix<\/a> that uses both plans\u2019 investment options. Once you\u2019ve agreed on an overall allocation \u2014 say, 30% U.S. stocks, 15% international stocks, 50% bonds, 5% real estate\/alternatives \u2014 implement your strategy by picking the best-performing funds from each plan.<\/p>\n\n\n\n When it comes to tax-advantaged retirement accounts, like your 401(k)s, one of you might also have access to more employer matching funds than the other. Don\u2019t let monthly bills keep you from maximizing your retirement plan. Work together to make sure you\u2019re capturing that free cash as a couple and setting your retirement goals together.<\/p>\n\n\n\n This sounds easier than it sometimes is. Most couples are so busy working, raising children, chasing short-term goals, and running a household that they hardly have time to talk to each other. You may have to go out of your way to schedule a conversation about your finances, even twice a year. Still, don\u2019t put it off. Treat those conversations like important, work-related appointments you need to keep.<\/p>\n\n\n\n Discuss whatever is on your mind, including your household budget, retirement portfolio, vacation expenses<\/a>, and college funding for children. Plan to have these conversations in as relaxed an atmosphere as possible \u2014 it\u2019s important to do it in a calm, focused environment. <\/p>\n\n\n\n At the end of the day, committed relationships are financial partnerships \u2014 and like any successful partnership of equals, they depend on compromise and mutual cooperation.<\/p>\n\n\n\n
\n Get started \u2192<\/a><\/p>\n<\/div>\n\n\n\n\nFive secrets of a financially happy relationship<\/h2>\n\n\n\n
1. Agree to disagree about some things<\/h3>\n\n\n\n
2. Keep multiple accounts<\/h3>\n\n\n\n
3. Share the bills<\/h3>\n\n\n\n
4. Invest as a team<\/h3>\n\n\n\n
5. Communicate (and keep communicating)<\/h3>\n\n\n\n