As a couple, managing finances together is essential for building a strong and healthy relationship. It’s not just about dealing with numbers and budgets, but also about understanding and respecting each other’s views on finances. As per the survey, an average couple spends 63 hours per week on unpaid household work. However, only 29% of couples share these tasks equally. In terms of financial administration, men are responsible for paying the bills in 41.6% of relationships, while women are responsible in 23.7%. In 34.5% of relationships, tasks are split equally between partners.

Each of the two would have numerous personal financial objectives when they started dating or are newly married. They must first know that discussing money with your partner is not just about the practical side of things; it’s deeply rooted in trust and communication. Understanding each other’s financial background and attitudes is crucial. Start with a simple conversation about how you used to handle money as kids, what you learned from our first jobs, and the financial lessons your parents taught you. It’s important to have these talks naturally, not just when you are faced with a big financial decision.

Together, set short-term and long-term financial goals. Short-term could be as simple as saving for a nice dinner out or as significant as planning for a vacation. Long-term goals include bigger plans like buying a home or preparing for retirement. Regularly talking about these helps us stay on the same page and work towards common objectives.

Secondly, track your long term security. To achieve long-term financial security, it’s important to track your savings rate. Aim to save 10-20% of your gross income, with 20% being the ideal target. This will help you avoid lifestyle creep as your income increases.

Long-term savings include contributions to retirement plans as well as money saved towards a down payment on a house or paying off high-interest debt. When calculating your savings rate, focus on what you reasonably expect to achieve over the course of the year.

Thirdly, it’s important to keep track of cash inflows and outflows. To determine your fixed expenses, start by calculating your monthly net income. Next, list all of your fixed expenses, including your rent or mortgage, childcare, groceries, vehicle expenses, internet, subscription services such as Twitch and Netflix, and any other expenses that are non-negotiable.Once you have your total fixed expenses, divide them by your net income to determine your fixed expense ratio. This ratio should be limited to 50-60% of your net income. Keeping your fixed expenses in check is critical to feeling in control of your financial situation and having room for savings and discretionary spending.Finally, establish strategies for coping with financial challenges, such as a sudden loss of income or unexpected expenses, which involve managing financial stress. To have a healthy couple relationship, it is very important to think beyond love. Be practical about money and its far-reaching, long-term effect on the relationship, with a healthy discussion. So that there would be love here, now, and far beyond. By having these elements in place, you can create a solid foundation for your financial future together.

(The author of the article is COO of Tradejini)

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

(You can now subscribe to our ETMarkets WhatsApp channel)

(What’s moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

Download The Economic Times News App to get Daily Market Updates & Live Business News.

Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price


Source link