7 Valuable Financial Tips for Couples

Whether you're already married or at the latter part of the dating stage, discussing finances is a great indication of how serious you both are as a couple. It is a sign of adulting when flowers and chocolates arguably don't give you as much excitement anymore compared to receiving a sack of rice or a financial gift on Valentine's Day.

Nonetheless, couples need to talk about financial matters, be transparent about each other's individual spending and saving habits, and come up with a mutual objective when it comes to their financial goals. If you need a guide on how to pull off your financial aspirations as a couple, Lumina Homes gathered up some valuable steps you can take to start your journey toward financial freedom together.

1. Discuss each other's money personality

It always begins with a simple conversation. First, ask about each other's spending habits. Note that honesty is very important in this conversation. You don't have to lie about being a big spender if that's your money personality. However, prepare to go on a compromise as both of you will inevitably come up with building money-saving habits and refrain from splurging beyond your means.

In addition, discussing any debts each of you may have is ideal. It could be a good debt (mortgage) or a bad debt (credit card debt). Either way, it's extremely important that both of you are aware of each other's financial situations and personal expenses. With this practical approach to your future joint finances, you will avoid future arguments that will arise from a lack of communication about each other's past and present financial decisions.

2. Discuss each other's finances, including debts

If you trust each other enough and are certain about taking it to the next level (if you aren't married yet), it wouldn't hurt to disclose each other's monthly income. Knowing each other's salaries will give you an idea of setting up reasonable amounts for your joint savings.

If the other person turns out to have weaker financial health, so to speak, it is important to not cast any judgment about your significant other's current financial situation. It could feel uncomfortable talking about each other's finances, but it will help prevent future conflicts involving spending money.

3. Agree on a money strategy and stick to it

As a couple, you have to be uniform when it comes to strategizing on how best you could save up money. You may find yourself being torn between the top two choices for money management among couples: are you going to save up money separately, or establish a joint savings account and combine your salaries?

If you will choose to keep your savings separate, this is arguably the better money management method in that it holds oneself accountable for one's individual spending habits. This means that if your partner has a debt of his/her own, he/she should only be the one to pay for it. This might be the better choice if you don't want future arguments that will stem from anything about your shared monthly bills and family finances.

Meanwhile, a combined income on a joint account is also a great money strategy for couples. This means you will both have an idea of your total salaries and wages together. According to a study, "financial togetherness" is likely to result in a better marital relationship, citing that mutual dependence is key to a happy married life.

4. Talk about each other's needs and wants

As a couple, likewise, both of you have to be open about your individual needs and wants. Also, it's important to discuss your wants and be able to treat yourselves every once in a while. Are you the type of person who feels relaxed dining in a restaurant once or twice enough as a gesture of spoiling yourself for your hard work? Or do you practice self-love by fulfilling your moderate materialistic urges, such as buying a pair of shoes every payday?

Be that as it may, be prepared to compromise and create a middle ground so as to establish a solid strategy to save money together and achieve your financial goals without depriving yourselves of your wants every once in a while.

5. Come up with short- and long-term goals

It is indispensable that both of you have clear goals. Are you going to save for a future overseas trip together? Will you allocate funds for a car purchase in a few years? What about an affordable house and lot that you will live in after you tie the knot? Discussing these things and agreeing on which both of you would like to prioritize is a giant leap toward accomplishing it.

However, if one or both of you have debt obligations, always see to it that becoming debt-free is a number one priority no matter what. Paying your debts on time will have a positive impact on your credit score. This is a great advantage if you would later want to purchase a house and lot in the Philippines as you can apply for a housing loan with a higher loanable amount.

6. Set up an emergency fund

When unexpected events happen, such as a hospitalization or a sudden job loss, having an emergency fund is a financial lifesaver. Having enough money for your emergency fund stored in joint accounts will give both of you the relief that comes from not having to shell out more money than necessary, breaking your bank account savings in the process. Financial experts suggest that the ideal savings for an emergency fund should equate to three to six months of your monthly expenses.

7. Talk about your financial preparedness to have kids

Talking about your financial readiness of having kids doesn't necessarily mean that it's an immediate prospect. You can openly discuss as to what age you wish to have kids, and whether or not you are financially prepared by that time. In fact, if the prospect of having kids don't particularly appeal to you, then become the modern-day young adults who don't get easily pressured by society's dictatorship of how you should be living your life. Become childless adults with a mansion and sportscar if that's what your hearts truly desire!

If part of your financial plans includes purchasing an affordable house and lot for sale to call your home, Lumina Homes is a trusted homebuilder of real estate properties in the Philippines. We provide affordable housing without sacrificing quality in our housing models and their perks and amenities in a conveniently located community.

For inquiries on down payment, interest rates, and other real estate investment concerns you may have, feel free to message us via our website and social media accounts. Become one of the couples who invested their hard-earned money with Lumina Homes for their house and lot in the Philippines!