4 Monumental Financial Mistakes that Couples Make

written by Fred Campos
When you enter a new relationship, you need to make sure that you are both on the same page when it comes to money. Having conversations about your finances can be very beneficial if you want your relationship to last, not to mention that it gives you the chance to work together towards a common goal. If you want to make sure that you are not making some of the major mistakes that most couples make, then this is the guide for you.

Financial Mistakes – Not Talking About It

Talking openly about your finances is very important. It may seem like a bit of an uncomfortable topic to begin with, but it could help to prevent a lot of fallout in the future. It may be that there is one person in the relationship who makes all of the financial decisions and although there is nothing wrong with this, both partners should know what decisions are being made. If one person was to die prematurely, then this could leave the other person in a very vulnerable position, especially if they do not have a solid understanding of how the finances work within the household. Any divorce lawyer will tell you how important it is for you to discuss finances openly within your relationship because if you don’t then this can work against you more than you realize, especially if you were to split in the future.

Only Linking your Main Accounts

A lot of couples have combined accounts or they have a joint mortgage with one another. That being said, spousal linking is very important with investment accounts too. This can actually lower the charges that you have to pay as individuals, so it is important to keep this in mind. Some of the other options that could save you money include having joint-life cover as well as car insurance. Things like this can help you to cover yourself and your partner and this can work in your favor.

Considering the Future

A lot of government policies will favor you if you are in a civil partnership or if you are married. Marriage may not be suited to every couple, and this is understandable but that being said, it is actually one of the shrewdest moves you can make. That being said, if you are not on the same page about your finances then getting married could cause more problems, so you have to make sure that you are completely open with each other before you consider things like this.

Holding Assets

How money or even assets are held often determines who gets the benefit. Factors like this are rarely considered by couples who are married. You may find that you are able to capitalize on a return of 40% or more in terms of interest on your savings accounts, for example. This is only the case if you have them placed in your partner’s name and if you are in a low tax band. Getting a financial advisor is one of the best things you can do here, so be mindful of that if you can.

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