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Four Important Principles that will help you Manage your Finances and Relationships

18 March 2013 3 Comments

canstockphoto2564168Finances and relationships are two aspects of life that many people will end up struggling with. Indeed, apart from our own self, these are the most important aspects in just about anyone’s life. Therefore, it is important that you know how to manage both of them together well. In the following sections, we talk about four principles that can help you manage them better.

The Importance of Communication

When it comes to finance, regular communication with your partner is one of the most important principles in a relationship. No two partners in a relationship have the exact same goals, financially or in life in general. Therefore, you need to talk about your goals and the means on how you want to achieve them. As long as you regularly talk about money with your partner, you won’t be blindsided by some debt owed by your partner that you did not know about, or some other financial obligation. Communication will help you remain prepared for the worst, and also help you to make financial plans together.

Honesty will help you Get there

Honesty is a good policy in almost every sphere of personal and professional life, but it is even more important in a relationship. When in a relationship, you are a partner in more ways than one. You likely share same resources and expenses, and perhaps split the rent. Therefore, your finances are mutually intertwined with each other. In such a situation, your partner expects and deserves total honesty about your finances. If you have some expenses or debts that you have not divulged to your partner, they will likely cause you a lot of trouble in the future.  Therefore, plan for the future, and remain honest with your partner about your finances. At the same time, you too should expect the same kind of honesty from your partner.

Financial decisions have no Need for Emotions

When talking about a financial decision, what matters is how the numbers add up, not how you feel about them. Therefore, when talking about money with your partner, you should try to avoid emotional reaction to your partner or to any object under discussion. For example, if your partner says that you need to cancel your cable subscription, or your gym membership, to help meet the monthly budget, you should not consider that as indicative of how much important your partner thinks these things are in your life. Emotions can also come into play in other ways – such as making you angry or jealous about some aspect of your partner’s finances. It is important to look at the situation objectively before making a decision about it.

Plan Ahead

This is perhaps the most important principle here. Good relationships and better finances never happen automatically; you have to plan and work for them. When you talk about finances with your partner, talk about your future plans, and also make new plans. Come up with solutions to your problems by talking about them.

The aforementioned four principles can help you in almost every aspect of your life, but they are especially useful when managing finance and relationships.

3 Comments »

  • Jum said:

    Great post. I just located your blog and wished to let you know that I have certainly loved reading your blogs. At any rate I’m going to be subscribing to your feed and I really hope you are writing again soon.

  • Ted said:

    Excellent post, I agree with everything, but especially the honesty in both the relationship and finance area.
    Too many people hide finance details from their partners, and this can lead to real trouble in the relationship area.
    I enjoyed reading this, thanks!

  • LisBrown said:

    The idea that men should control the budget and spending isn’t new, and its an idea that men have used to control their wives. This is dangerous research that supports the idea that women can’t be in control of finances. Women should never completely hand over their finances to anyone. Actively sharing responsibilities for budgeting and investing seems like a much more open and honest way for a couple to deal with money.