How to avoid arguing about money

If you are one half of a couple, you need to involve your partner in making major life decisions and working out what you want from your life.

That includes financial decisions.

For instance, do you want to prioritise paying down debts and pension saving over more discretionary short-term spending such as holidays? Or do you both want to retire early and use your money to enjoy joint passions like foreign travel in later life?

Discuss this together, so you can both work towards compatible goals over the years and even decades that lie ahead.

Set a clear split of expenditure

Discuss how much of a contribution each of you make towards household bills, or else it may become a simmering source of resentment.

For instance, you may rather not go for a 50-50 split if your partner earns significantly more than you, so it is worth having this discussion and reaching an agreement that suits you both.

Create an emergency fund

You can never know when something will go wrong, so it pays to be prepared. For example, an expensive household appliance you rely on might break down. Worse still, you could suffer an accident, be the victim of a burglary, or fire, or even lose your job.

If you have put some money aside into an emergency fund, you will be in a much stronger position to withstand this sudden shock without conflict, panic and having to access your precious savings.

Be open with each other

Money can be a taboo subject, but it shouldn’t be off limits if you are cohabiting or married. Openness is particularly important if you are combining your finances in certain ways, such as if you are taking out a mortgage or buying a property together.

If, for example, you or your partner have a poor credit rating, you would need to say so before entering into such a huge joint commitment. Otherwise, it could cause significant financial problems further down the line and be toxic to your relationship.

Of course, money isn’t an exciting topic to talk about, particularly if you’re in the early stages of a romance. We get that.

But that doesn’t mean it is unimportant. So get those mundane financial conversations out of the way and make a plan of action together, to put your relationship on a strong, harmonious footing.

If you have any questions about managing your finances and achieving your financial goals, please do not hesitate to get in touch and we will be happy to speak with you.