Merging your accounts with your honey? Read this.
Guest contributor, Janine Rogan, shares tips to make the merging process simple and effective.
Saying “I Do” is a big step for many couples and once all the fun is over, there are big financial decisions you need to make as a couple. For many couples they need to determine whether or not to combine their bank accounts.
Merging your accounts with the love of your life has pros and cons. For starters it makes things easier at the end of the month when you don’t need to tally up who owes what. If it’s all coming out of one account and you treat every dollar as ‘ours’ it can be financially empowering to work towards those joint financial goals. On the flip side if you don’t trust your partner, or you jump into sharing finances too quickly without setting boundaries, it can be detrimental to the health of your relationship.
3 steps to take before you combine your money with your love:
- Lay all the cards on the table. Understand your starting points, who owns and owes what.
- Calculate your net worth. Your net worth is what you own (assets) less what you owe (liabilities). If that number is positive continue to move it in the right direction, if it’s negative you have a bit of work to do but in the long run you can still achieve financial independence. MeVest, Lesley-Anne’s money school, has a fantastic net worth tracking tool (click on the tracker from the right sidebar).
- Talk about your money values. Tell your partner what is important to you and understand what is important to them. Find common ground and focus your efforts there. Working towards something together will bring you closer together.
At the end of the day, frequent communication is what is going to be the key when it comes to couples finances. Make sure you are talking about your money, and talking about it often!