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Sarah Hancock, MD of Brehon Accountants gives us top tips on managing finances and accounts.
Fights over money are the second leading cause of relationship breakdowns, so when you’re ready to take the next step and join financially with your partner, it’s important to decide how that looks for your relationship. There is no exact formula and certainly no right or wrong, but we can all consider similar ingredients and apply those to the methods that work for you.
Set up a joint savings account and discuss what your goals are. This can be anything from a dream holiday to a house and family. Decide who will take overall responsibility for the management of your money, or leave it up to an app! Mobile banking is a reliable way to track your money on the go and providers like Monzo can allow you to track your spending and set saving milestones to keep you motivated.
Live within your means. Pay off any credit cards monthly, and try not to buy it unless you can pay for it. Credit checks are an inevitable part of life, so it’s important to consider the long term repercussions of your spending.
Be honest with your partner about your financial situation. Inequalities in earning can threaten your bond. Equally, earning more than your partner and being able to look after them is extremely rewarding. It’s vital to be realistic about your spending and earnings. Consider what you can afford to save and discuss this with your significant other.
You both need to allow yourself a few luxuries. Individual indulgences keep life exciting. Set aside some money that is yours to spend as you wish, but you need to agree that amount of money in advance to avoid missing joint savings targets.
Beyond these things are a world of joint assets. Buying a first home together is a big step which will only be made easier by communication, trust and honesty. Once you’ve worked out a simple process and routine, your finances will become a lot easier.
The world really is your ormer eh!
If you are running your own business and need a little help, give Brehon a call on 01481 233009
