So you’ve tackled your “now.” What’s next?
The next step is to start planning what the future looks like. Talk about what you each see and expect out of the next few decades.
- How do you want to split expenses? Do you deposit all funds into a joint account and then pay everything from that? Some people prefer 50/50 even if one person makes more money. Others divide expenses based on income. Some couples even work out more creative solutions, such as: One person pays all the living expenses while the other does the saving and paying for extras, like vacations and concerts. Figure out what works in your relationship that won’t lead to misunderstandings or conflicts.
- Do you want joint savings and/or checking accounts? Depending on how you share expenses, you may want to share savings and checking accounts, too. Create some infrastructure that helps you reach your goals. For example, a joint savings account for your dream home that each of you automatically pays into each month. Or, if you share groceries and other living expenses, you might create a checking account for those expenses, so you don’t have to keep a ledger. The more you can set and forget, the easier achieving joint goals may be. Make certain that you talk about this on your Money Dates, so that one partner doesn’t overdraw, due to poor communication.
- Talk contingency plans such as creating a nest egg for emergencies, life insurance, and other safety nets. It’s a good rule of thumb to start with savings that can cover expenses for three to six months.
- Are you interested in buying a home together? What kind of house? How much would it cost? Can you save up for a down payment? Making a plan together and writing it down can help you reach that goal.
- Talk about kids and aging relatives. As a couple, you should discuss future expenses and any expectations you have about future responsibilities before it becomes an issue. From preschool, private school and college to eldercare, there are lots of expenses that come with dependents and should be considered in your long-term planning.
- What does retirement look like for you as a couple? Discuss what retirement looks like for you. How much income will you need? Have either of you started to save in an IRA or 401(k) plan? Did you know that 60 percent of couples and almost half of Boomers don’t have any idea how much their Social Security benefit might be?3 The information is readily available on the Social Security website if you want to start factoring that into your retirement plans.
Celebrate successes
There will be struggles and wins on your path to financial security. Talk about how you want to celebrate the milestones you receive. Do you want to throw a party to celebrate making the last payment on your student loans? A family night out when your emergency savings account hits its target? Recognize your successes, and make it fun.
What was once an uncomfortable topic can become the glue that binds your relationship together. Communicating about the future you want to build together can be fun! So, when are you planning your Money Date?
For more ideas on how to manage your finances, call me at 716.817.6425 and we’ll tackle this together.
If you’d like to discuss any of these helpful tips, schedule a Financial Clarity session with me at www.calendly.com/contactAGrace.
