Things to Consider When Combining Finances With a Partner

Moving in with a significant other is a huge step and one that can be beneficial for both of you. However, I’ve seen my share of partners struggle with the addition of financial confusion to their already complicated relationship. It can be a rocky transition, even when you love each other.

If you’re on the verge of moving in with a partner and beginning to merge our finances, there are a few things you need to consider. Here are my top tips for making the transition as smooth and painless as possible.

You Need to Have a Real Financial Heart-to-Heart

In today’s society, talking about your financial mistakes and secrets can be as embarrassing as talking about that secret mole on your back or that time you threw up in class during high school. Unfortunately, no financial merger can survive if you both refuse to air out your dirty laundry.

The period before you officially combine finances should serve as a platform for an intense discussion about the good, bad, and the ugly aspects of each person’s money situation. Now’s the time to reveal that your credit score is low or that you’re facing 70 grand in student loan debt.

Although you might be nervous about opening your financial situation up to scrutiny from your partner, there’s nothing worse than unearthing money problems later on in the relationship. Rip the bandaid off now and have a frank, kind conversation with each other in which you’re completely honest about your finances.

Some topics to cover in this discussion include:

  • Any outstanding debt
  • Credit scores
  • Savings accounts
  • Salaries
  • Big financial goals
  • Subscription services or other monthly expenses

Talking About Your Responsibilities Beforehand Is Essential

Since you’re merging finances for the first time, it might not be very clear as to who is in charge of what. Who will pay the rent each month? Who is responsible for handling grocery shopping? What about monthly expenses like electricity, internet, and water?

Don’t wait until later to clearly define both of your goals. This will make it easier to start things out on the right foot. Plus, you’ll spend less time fighting about who let things slip between the cracks. You don’t want to wind up resenting each other because you never clearly outlined fiscal responsibilities.

Establish a Method for Checking In With Each Other and Your Finances

Although you definitely need to have a conversation about your finances upfront, the communication can’t stop there. Deciding to merge your finances means that you’re committing to sharing things with your partner, including when you splurge on a new toy or a fancy pedicure.

Between keeping up with your budget and re-evaluating savings goals, there are many topics to continuously discuss with your partner. That’s why I suggest setting up a time once a month where you can both sit down and review your situation.

Things to talk about at this meeting can include:

  • How much you both spent over the past month and where you overspent
  • Any financial changes you may face in the next month
  • Big expenses that are coming up in the near future
  • Saving goals and what needs to be done to achieve them
  • Any issues you have encountered, either with each other or with your finances
  • Ways to improve your financial situation in the coming months and years

In Conclusion

Combing your finances can certainly seem scary, but what’s scary is entering into a monetarily bound relationship without making boundaries and expectations clear. Take time to thoroughly explore your financial situations together before they become intertwined.

You’ll thank yourselves later as you watch other couples fall apart over budgeting arguments and hidden bank accounts.

Porsche 911

The Porsche 911 is among one of the most classy, elegant and well- known cars. Created in 1963, by Ferdinand ‘Butzi” Porsche, grandson of the company founder and famed designer of the Volkswagen Beetle. He succeeded in beating the historic Porsche 356, with the 911 which rapidly surpassed it and became one of the favourite sports cars all over the world. Let’s look at the different types of Porsche 911.

The 911 TARGA 4

The Porsche 911 Targa, this car is a halfway house among the 911 coupe and 911 Cabriolet models. The designer of this car made it in such a way that the top section of its roof can be folded away. Through an elaborate process which includes the giant rear screen being removed from the car.

The 911 GTS

The first indication that Porsche built the 911 GTS as a driver’s car is the steering wheel. Wrapped in a suede-like material called Alcantara, it is recreated by the plethora of plastic buttons manufacturers choose to place on today’s steering wheels. The 911 GTS is one the most beautiful and luxurious car, similar to this Aspers online casino has the most well- designed games developed by famous creators. What to know more about it? Head to the site to find more.

911 TURBO

Want to be in the race? Then the 911 Turbo is the one, as it is made for motorsport. It comes with a twin-turbo 3.8-liter flat-six that’s mounted over the rear wheels like every other Porsche 911. It has a Turbo model which has 540 horsepower and 523 lb-ft of torque.

And as for the Turbo S, it is combined with another 40 ponies and 553 lb-ft of torque. The 911 GT3 with its naturally suctioned engine is designed to make every journey memorable. By increasing the engine power and reducing the weight and you’ll end up with a 911 GT3 RS. The 911 GTS RS.

911 GT3

The Porsche 911 GT3, this baby has a high geared version. This sports car is mainly meant for racing. Introduced in 1999, it comes with high-performance models and due to its success, it has produced 14,000 cars. GT3 is well- known for racing and has also won championship and endurance races. Including the GT class of the American Le Mans Series seven times which, made a first overall in the 24 Hours of Daytona. And it was six times first overall at the 24 Hours Nürburgring.

911 GT2 RS

The new 911 GT2 RS is the most powerful 911 to be built by Porsche. It has a brilliant performance and the high level of a super sports car. It has a great design and combines the smooth conditions of ideal downforce and maximum air supply. The Porsche 911 GT2 has the ultimate top speed with the quickest zero-to-sixty. How cool is that!

Whilst all the models remain around the 200-mph mark, the GT2 is the only one that conquers all other sports cars. On track, it has hit an impressive 211 mph, and it was marked as the fastest of the 2019 911 models

The Importance of Understanding your Expenses

A big part of maintaining personal fiscal responsibility is understanding one’s actual financial position. That includes understanding the relationship between one’s income and the expenses they incur on a monthly basis. 

Understanding Personal Finances 

They don’t spend much time in school teaching people how to manage their finances. If you feel a bit lost on this topic, you are not alone. With that said, you really do need to invest some time and effort into understanding how to better manage your personal finances. Part of the process should include learning how debt affects your life and how learning to create personal budgets can keep you in good financial position. 

The Importance of Preparing a Monthly Budget 

If you plan on having good control over your finances, you need to control your spending. For most people, the amount of monthly income they have to manage is a fixed amount. It’s the individual’s expenditures that can vary from one month to the next. 

The best financial tool you have at your disposal is preparing a monthly budget. Using your income as a guide, you can determine how you want or need to spend that income throughout the month. When budgeting, you need to make sure you always put away some for savings. That comes first. After that, you’ll want to make you handle your statutory financial responsibilities like rent and any installment loans for which you may be responsible. Those are your highest priorities because not making said payments can result in long-term legal and financial issues. 

As part of the budgeting process, you would take all the above items into consideration and anything that’s remaining would be discretionary income you can use on variable expenses like food and entertainment. That’s how you set up your finances to assure you don’t get over-extended. 

Enjoying a Financially Secure Life 

The last thing you want in your life is to deal with stress related to your finances. That’s one sure way to affect the quality of your life. For that reason, you want to always focus on doing what’s necessary to give yourself as much financial flexibility as possible. 

As you contemplate your current situation, there’s several things you need to understand. First, you should only take on installment debt as long as you have the ability to make timely payments on a regular basis. It is quite common to carry some form of installment debt – for example, both mortgages and auto loans are types of installment loans. Short-term installment loans are intended for times of emergency, like unexpected medical expenses or urgent unavoidable home repairs. As long as you can make the payments on time, this debt should not be alarming. 

Second, as you manage your expenses, you should do all you can to position yourself to pay off debt as early as possible. By doing so, you could be opening the door to other financial opportunities. This can also have a positive impact on your credit score, which open up opportunities should you find yourself in another financial pinch down the line.  

All of the above information is a road map to financial sovereignty. Bottom line: If you control your expenses then you control your financial future. 

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