Navigating Financial Struggles in Relationship and Marriage: Joint Accounts vs. Separate Wallets
Financial struggles can always cause great stress and strain in any relationship. They can also lead to a relationship ending. It comes down to how you want to make things better and what sacrifices you are willing to make to help remove some of the strain to help your relationship. Your mindset and discipline are critical components to consider.
Living Together: The Money Talk
In a relationship, when a couple lives together you must have the money talk. Together, you need to come up with a monthly budget and an understanding of who pays what, or whether you get a joint account where both incomes go into the bank account to pay all of the bills and expenses. These are the kinds of questions you must have with your partner to understand how bills are going to be paid. Otherwise, it can become overwhelming and break up a relationship.
A Personal Approach
When my wife and I moved in together before we got married, we had this conversation. Together, we joined our incomes into a joint account and came up with a monthly budget to pay all bills and what money was left to go into our savings and money for us to use for our personal use. We both stuck to this budget. I actually handed my wife the checkbook and bills to handle and manage. She is great with money, and manages our finances well. We have never argued over money; our bills are always paid, and neither of us over spends or uses our credit cards unwisely. Our credit cards are also paid in full every month. We both are very compatible when it comes to money and what we do with it.
Financial Planning Before Marriage
Financial planning between couples is a must-have discussion prior to marriage. Some couples choose joint accounts, while others prefer separate wallets. The way they manage money is inconsequential based on their spending habits. They can decide the path they wish to take and come to a common ground. It is unrealistic to expect that money problems or money management will get sorted without any discussion. According to a statistic from IDFA, 22% of all divorces are due to money problems. Be wise when it comes to money and don’t let the initial infatuation cloud your sensible judgement.
Conclusion
Money problems and financial struggles can significantly impact the dynamics of a relationship and marriage. It is important to communicate openly and honestly about money, set a budget, and manage funds effectively to maintain harmony. Whether you decide to have a joint account or choose separate wallets, make sure to reach a mutually agreeable solution that suits both partners.