How much do we really have?
When your paycheck hits your bank account at the start of the month, knowing exactly where it’s going is important. It all begins with fixed expenses – the non-negotiables in your budget. These include things like rent, car payments or gym memberships – the monthly costs that stay consistent.
Once you and your partner have determined your fixed monthly costs, it’s essential to consider your savings rate. Sethi says it’s important for couples to have a conscious spending plan that accounts for debt. This may involve creating a timeline for meeting certain financial milestones.
“If we have debt, what is the exact month and year our debt will be paid off?” Sethi suggested asking.
At the same time, asking the right questions may only get some couples so far. According to a Fidelity Couples and Money Study, one in five couples identify money as their greatest challenge in a relationship.
One way to make these money conversations feel less like a struggle is to find a common motive. Having a savings plan as a couple offers security and a way to work towards your goals with intention and assurance. Saving doesn’t have to feel like a chore or just another way of stashing away your hard-earned money for the sake of it. Instead, it can be a way for you to enjoy things like a dream vacation you can experience together.
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Learn MoreWhat about investments?
One classic rule of thumb is to save 20% of every paycheck. It’s part of the popular 50-30-20 budgeting strategy: allocate 50% of your income to essentials, 30% to wants and 20% to savings and investments.
If you and your partner are on the same page about the 20% investment goal, the rest becomes much simpler. You might decide to put your money into the S&P 500, explore real estate investment trusts (REITs) or other alternative investments. Whatever you choose, working together on these investments can turn shared financial goals into a safety net for retirement.
But financial planning isn’t all about restraint. As Sethi pointed out, “Money can be a source of joy and connection.”
This is especially true when it comes to the guilt-free spending rate. This number is where couples can embrace splurging on what they desire most — after taking care of the other numbers first, of course.
Whether it’s a personal item, like a designer handbag, tickets to a concert you both love or a weekend getaway to celebrate an anniversary, these can be moments where spending isn’t just transactional but meaningful.
With the right balance of saving, investing and guilt-free spending, you and your partner can create a financial plan that secures your future and helps you enjoy the present.
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