As per reports revealed through Pew Research, more and more millennials are deciding to live in with their significant halves. Just after the initial flush of excitement is gone, there are several details that have to be discussed upon. Among them, finance is undoubtedly the most important topic. Fighting over finances is one of the main reasons that wreck the bliss of cohabiting.
Living in with your partner and determining how cohabiting can work in relation to your personal finances is a growing concern, as per a certified financial planner. You should each and everything in writing and all expectations on debt should be set right. If you live together without splitting expenses and without letting each other know, this will continue for hardly a year. Gradually, resentment will bound to set in. Here are few things that millennial couples can do.
Speak out and have discussions with your partner
Doesn’t this seem like a no-brainer? But this has to be the first and foremost step that you have to take is to initiate an honest communication with your partner regarding your finances. You should speak about the type of money and engage yourself in a quiz about the kind of spending habits. Few important topics are your income, the way you can manage your expenses and how you save enough money. You also need to know the way you can compromise with your partner.
Be positive about compromise
Don’t ever think, “This is my money, this is my income, these are the debt obligations that I’ve incurred and my partner has to agree to it”. You should take a close look at yourself and determine the few things that you should change. When the partners come together, they will have several outlooks and opinion on spending and the general value. If one partner loves shopping, the other one has to adopt a frugal attitude.
Share how-tos and solutions
The most important part of your conversation should be the way you choose to share your expenses. Although there are several who think that sharing should be 50/50 but that might not be okay for both parties. If one partner makes $70,000 and the other partner makes $30,000, there will definitely be few expenses which will seem to be harder for the lower-income earner. For such cases, they can leverage the percentage of income, around 15% for both basic and housing expenses.
A part of your income should be kept separate
When you start a relationship with your partner, the least that you think is that the partner will clean your money out. However, if you have to be on the safe side, you shouldn’t share all assets. There are many couples who think that the joint account is one of the best ways of paying down expenses and tracking money. You should discuss beforehand on the amount that both of you will contribute and in what way the funds will be used. Don’t make the mistake of opening a joint credit card as there will be chances of maxing out or cleaning out.
Hence, when 2 millennials are planning to stay together or cohabit, make sure you follow the above mentioned tips and advices so that you don’t end up fighting over money and spoiling the charm of your relationship.