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Good communication in relationships isn’t just about sweet nothings—it’s also about financial transparency and making good decisions. According to a 2021 Fidelity study, couples who communicate well expect a comfortable retirement, view their financial health as positive, and don’t see money as a major relationship hurdle. Joint financial decisions, from daily spending to long-term planning, keep couples on the same page and moving in the right direction.
This is not limited to young couples. Whether you keep separate accounts or merge your finances, clarity on goals is key and results in goals that are created by and for the couple. Remember, when you become a couple, you become a unit. While you might have different views on debt, saving, and spending, focusing on shared goals is one of the best ways to avoid blind spots.
If you have lived more than twenty years, it’s likely that you know financial stress is one of the greatest contributors to divorce. Debt can be a relationship buzzkill and ignoring it can accelerate the death of a great relationship. We encourage every client, especially young couples, to make a pact with their partner when it comes to tackling financial decisions. The sooner you learn how to “free up” cash for future dreams, the more you will learn how to build financial security.
Consider prioritizing higher-interest debts and compare them to a 6% guideline to decide where to focus your efforts. Clearing debt efficiently saves money, which promotes a faster track to a future filled with fulfilling dreams and goals.
If you are new to some of these ideas, try setting joint savings goals. Believe it or not, this will strengthen your bond. Whether it’s a wedding, a home, or a holiday, aligning financial strategies gets you closer to shared dreams.
Need a little help knowing how to allocate spending? Try limiting essential spending to 50%, save 15% for retirement, and try to stash 5% for emergencies. Building a buffer gives peace of mind and freedom to pursue short-term goals. As the buffer gets larger, some of those funds can be moved to the family investment program for longer-term goals. Automate savings to make it painless and more predictable.
Picturing your future savings for retirement might feel like planning for a sci-fi movie, but it’s essential. Starting early unlocks the power of compounding, turning modest contributions into substantial nest eggs over time. Also, if you are a couple, doing it on terms that satisfy each other will help make your story one of great success.
Small sacrifices today can mean big bucks down the road. Even if you’re no spring chicken, there’s no time like the present to plan with your partner for a golden future. Enjoy Valentine’s Day ,and use it to open a discussion of real love – getting your financial house in order. Nothing can be sweeter!
