Fiscal Fitness

5 tips to avoid money squabbles with your partner

  1. Figure out what’s important. Make a list of short- (less than three years), medium- (three to 10 years), and longterm (10-plus years) financial goals. Rank the goals. Create a plan to achieve them, and get started.
  2. Communicate openly and honestly. Learn about each other’s “money life” so you can understand and work together better. Regularly talk about your values and goals; financial hopes and fears; and what you’re bringing in financially and what you’re spending as well as credit reports and scores.
  3. Join and separate. Have a joint checking account for household expenses with each of you contributing. Once needs are covered, each partner may want to have a separate bank account, credit card, or extra funds for “nag-free” spending.
  4. Pay expenses proportionately. Each partner could fund the joint account for household bills based on what he or she makes. For example, if one partner earns $40,000 and the other $20,000, the money set aside for expenses could be divided 2/3 and 1/3, respectively.
  5. Create a cash cushion. Set aside at least three months expenses to handle life’s inevitable surprises. A six-month cushion is even better.

Article from Self Insured Plans Discover the Benefits health news letter.

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