As unmarried couples you face unique money issues; however, do not fall into the trap of failing to do your financial planning on time as you may be placing your relationship at risk. The deeper and more long lasting the commitment, the greater the need for advanced financial planing.
Below listed are several things that you can do as a couple to ensure financial stability within your relationship:
You should start budgeting if you are spending more than you make. Budget will best help you cut all the unnecessary expenditures. Based on your income you should decide how much money you can allot for your utilities including electricity and gas bills.
2. Save 1-10% percent of your income
Save a determined percentage of your income. Once you have a significant amount of funds saved up, you can invest it in real estate property which will pay off most in the long run. Saving money will allow you to achieve financial independence and a peace of mind that comes with it.
3. Start saving timely for your children’s educational fund
When two people breathe, a baby is always a possibility. Don’t forget that children grow ever too fast. The best thing you can do for them as a parent is to start saving dollars for their college fund. It is better to timely invest your money into the educational fund then to waste it on children’s toys and clothes. When your children are ready to enroll into college, you will be grateful that you did the right thing.
4. Plan for an emergency fund
In this time of financial crisis, having a family emergency fund is the best protection that you can ensure for yourself and your family. It will enable you to breathe easier and have more confidence in yourself.
5. Invest your money on time
Instead of relying on renting your landlord’s property on a monthly basis, you should consider investing into a down payment for a house. Investing into your own home is the wisest long-term that you could make. You’ll always be able to rent parts of your house and earn additional income off of it.
6. Stay away from credit cards and debt
Simply make it a rule that you always pay with cash rather than credit cards. You will save significantly by relying on cash as you will not have to pay the high interest rates that the banks are charging when using credit cards. Thus, with cash you will only be paying for the original cost of the product purchased. Once you start spending “your real money” from your wallet, you will be less inclined to spend on the stuff you don’t really need. Debt is an obstacle to wealth and prosperity so it is best to stay away from it.
7. Start vacationing at home
As a couple you should of course not neglect yourself in the process. If it is not possible for you to go to the beach during the season than go off season. If that is not a possibility either, get organized and make your vacation at home.