By Kelebogile Matsepe
We’re at the end of the month of love and love has certainly been overly in the air. That does not mean our relationships have to come to an end, and we hope they don’t. Especially because of that elephant in the room…FINANCE!!!!
“It is a new year, and if your focus is building a better financial profile for you and
-Williams (Wonga Online Pty Ltd)
your partner, these steps might help you get to your end goal by the end of the
year. Start now, invest in understanding financial literacy better together, and
reward yourselves when you reach certain milestones,”
Here Are 5 Ways You Can Start That Finance Conversation With Your Lover:
1. TALK ABOUT IT
Be honest about where you stand financially, and discuss your attitude towards
money and your financial habits. This conversation is important to allow both
parties to be aware of what they are getting into.
2. SET SHORT AND LONG TERM PRIORITIES
In the spirit of a new start, do a financial vision board with your couple goals for
the year. This will make saving easier too because you both will know what you
are saving for, whether buying your first home, funding your dream vacation, or
starting a side hustle together.
Read More: how being married in community of property impacts your debts as a couple
3. KNOW YOUR WORTH
Discuss your income and review your financial statements for your savings and
current accounts, debt, bond repayments, or other assets you own. Subtract your
debt from the value of your assets and investments to determine your individual
net worth; this will indicate your financial health.
4. TRY JOINT BUDGETING
Draft a simple joint budget that you can refine and work on together. Start by
adding up the income the two of you can expect each month after deductions.
Make a separate column with all your expenses and other spending money you
will both need for daily activities. Subtract your monthly expenses from your
monthly income, then see how much you are left with. If you need help creating
and managing a monthly budget, use the Wonga Money Academy – it has a step
by step guide on how you can create a realistic budget.
5. BE ACCOUNTABLE
Decide who will be responsible for bookkeeping so that all bills get paid on time.
Make sure that the non-bookkeeping partner is kept informed about what is going
on and that they have a voice to flag anything they might feel is not aligned with
your master plan.
During this process avoid being judgmental as you gather the facts, and
remember that you are a team, you each have your strengths and weaknesses.
While we’re still talking money, here’s a cool habit you should probably adopt this year: How To Save Money Efficiently