4 top tips for managing money in relationships

Just how do finances affect our relationships?  Our latest survey brought out some surprising facts about how Brits deal with finances and how secrecy around finances can cause insecurity and ultimately put a relationship at risk.

For instance, survey results showed that nearly half of brits – (49%) - confess to not being open about their finances with their other half. And almost 43% said they had experienced a financial situation that had a negative impact on their relationship1.

Speaking about the findings, Jamie Smith-Thompson, Managing Director at Portafina, is offering four top tips for managing money in relationships.

Being open about money

 “A combined openness and honesty about finances is a fundamental part of a healthy relationship. Regular chats about money matters and financial responsibilities can get rid of any festering doubt or bitterness and, although talking frankly about money issues can sometimes be difficult, the trust you nurture will no doubt enhance other areas of your relationship too.”

Putting resources together

“Pooling money can be a great way for both of you to work as a team to enhance the stability and future of the relationship. Some may fear that they will lose an element of independence by putting their money into a joint account, but these will be for shared responsibilities. Of course, you could have a personal account for your own individual needs.”

Budgeting for the future

“Budgeting can sound a bit dry and boring, but it is seen as a means of paving the way for the dreams you have together – and that’s exciting. When working through weekly expenses, don’t forget to include a weekly allowance for both of you for treats and good times. Make room for rainy day money for those unexpected bills and then consider how much you need to save for those big goals and dreams you both have for the future.”

Long-term security

“In order to budget appropriately for the relationship, each partner also needs to understand each other’s individual needs. Once you have budgeted for the here and now, you can put money away to cover long-term requirements when incomes are likely to change.  For instance, factoring in pension contributions into your budget, for when one or both of you retire, can add an extra level of financial security when considering the whole journey your relationship will take.”

Jamie finished by saying: “Regardless of how long a couple has been together, talking about financial matters and money issues is crucial. Of course, as your relationship grows, so will your knowledge of each other’s finances. Having regular transparent discussions about your money is key to financial success as a couple, and being open with each other will help create the future you both desire.”

The basics for long-term security

Retirement may seem like a distant horizon, but whether you are 20 years away or just a few, it is important to make sure your pensions are in line with your goals for your future together. Keeping a close eye on your pension is essential - your pension could be working hard for you or it could be losing you a fortune without you even knowing.

Frustratingly though, the world of pensions can seem pretty complicated at the best of times and it is often hard to know where to begin, or even what is the best option for you. That’s why it makes sense to seek out the services of a regulated financial adviser who can review your pension in terms of the long-term needs of the relationship. If your pensions are not performing as well as they could be, switching to a different scheme could have a powerful impact on the money you both finally receive.

At Portafina, we offer a no-obligation review to help you check whether your pension is still on course and what options are open to you. There is no fee. You only pay us if you wish us to act upon our recommendation.  Claim our free information guide to find out what your pension could mean to you and your partner as you build a secure financial future.


Request your free information guidePension Information Guide 

 What you will get from the pack:

  • Get a deeper understanding of what your available options might be
  • Insight into how our no obligation review works and how it could benefit you
  • Details of how to get your review started

 

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Important Information

 1 Portafina surveyed 2004 UK adults involved in a relationship in October 2017

The details provided in this article are for general information only and are in no way deemed to be financial advice. All of the material is correct as of the publication date, but could be out-of-date by the time you read the article. For our latest information and news, please see our articles section: https://www.portafina.co.uk/whats-new

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